The FT has noted that:
It promises to be a long hot summer for UBS and Credit Suisse, Switzerland's two world-scale banks.
That is not because of continuing struggles with their troubled US credits, or from new threats to bank secrecy - one of assorted legal challenges from the US.
Instead, the concerns are homegrown, involving Switzerland's regulators, and cut to the core of the banks' businesses.Last Friday, Eugen Haltiner, chairman of the Swiss Federal Banking Commission (EBK), informed the two banks about plans to raise capital requirements above the already high levels maintained.
I think this understates the problem Who would put money into UBS right now when its US banking licence is in doubt or Credit Suisse when the whole secrecy model of Swiss banking looks like it will fall apart at the seams?
I think the writing is on the wall for this model of banking, and the world will be a a better place without it.
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Greetings, Richard,
You and your readers may be interested to learn that, on 17 July, the Subcommittee on Investigations of the U.S. Senate Committee on Homeland Security and Governmental Affairs will hold a hearing titled Tax Haven Banks and U. S. Tax Compliance. According to descriptive blurb on the committee web site, “The Permanent Subcommittee on Investigations hearing will examine how financial institutions located in offshore tax havens, including Liechtenstein and Switzerland, may be engaged in banking practices that could facilitate, and in some instances have resulted in, tax evasion and other misconduct by U.S. clients. The hearing will also examine how U.S. domestic and international tax enforcement efforts could be strengthened. The Subcommittee expects to issue a Subcommittee staff report in conjunction with the hearing summarizing its investigative findings. A witness list will be available Monday, July 14, 2008.”
Kind regards,
Martin