Swiss Banks seem to be guilty of what the world knew they have done for generations. Secrecy, tax evasion, money laundering are the big three. Go figure. The Obama administration which is not a friend of Wall Street or the Banking System has been on a mission. The scalps seem to be piling up. Fines in the Billions which may help to balance the Federal budget for a day or two.
It took a long time but the message to tax evaders is we will get you. The most important part of the settlements is not the headline grabbing fines or the guilty plea. It’s the turn. Banks are turning on their clients and giving up names by the thousands. customers are freaked that the data has been breached and now Uncle Sam has proof beyond a shadow of a doubt.
The US of A is probably the only major power that has gone after the Swiss. Other countries will follow suit. Maybe they will also hire lots of American regulators to show them how. In the meantime American’s who play close to the line or maybe do not know where the line is will stay away from Switzerland and probably go to other less stable or well established jurisdictions.
Quite frankly this means a drop in revenues and profits and everything else that goes along with private Swiss Banking. hence the Bear Case Scenario for the Swiss.
George Gutowski writes from a caveat emptor perspective.