Swiss banking is having another stomach-churning moment, but this one at least is only an embarrassing rather than existential event.

Julius Baer Group Ltd. has written down the full 606-million Swiss franc ($702 million) value of its loans to bankrupt companies in the Signa Group property empire. This was an intensely concentrated bet that made up nearly half of all the Swiss bank’s illiquid private credit book. Chief Executive Officer Philipp Rickenbacher has fallen on his sword as has the head of its board risk committee, while several executives and board members will give up bonuses or equity-based pay.