In an interview with CNBC on Tuesday, Opimas CEO Octavio Marenzi said that Switzerland’s once stellar reputation as a global financial hub is being undermined by the fiasco surrounding the formerly-major Swiss investment bank Credit Suisse.

His warning comes on the heels of the takeover of Switzerland’s second largest bank by its onetime rival , the largest investment bank in Switzerland, UBS Group. The two banking giants announced they had reached a government-brokered deal, which would see them merged in an effort to shore up confidence in the increasingly embattled banking sector and avoid a global crisis. UBS agreed to acquire the troubled lender in a cut price deal for three billion Swiss francs ($3.2 billion).

Marenzi said, “Switzerland’s standing as a financial center is shattered,” adding, “The country will now be viewed as a financial banana republic.”

He went on, “The Credit Suisse debacle will have serious ramifications for other Swiss financial institutions. A countrywide reputation with prudent financial management, sound regulatory oversight and, frankly, for being somewhat dour and boring regarding investments, has been wiped away.”

Even as UBS now appears to be assuming the title of the world’s largest wealth manager, with over $5 trillion in total invested assets, analysts note there is enormous concern growing over the health of the absorbed assets from Credit Suisse.

Investors are also focusing on the fact Credit Suisse wrote off $17 billion in AT1 bonds, as part of the merger deal. Now the debt-holders have been left empty-handed, and investors are noticing yet another risk to investing in the banking sector.

Vítor Constâncio, a former European Central Bank vice president, has said the decision to write off the bonds was a “mistake with consequences and potentially a host of court cases.”

Others have worried about the benefits of the merger, which could potentially endanger UBS, which until now was known as a well run bank with little risk. And as a giant like UBS suddenly appears vulnerable, so does the entirety of the banking sector throughout Switzerland, which until now was thought of as a model of sound banking practices. Going forward, investors are left wondering, if this could happen to Credit Suisse, in Switzerland, and place UBS under threat, is anyone safe anywhere?