The end of Swiss banking?

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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.