Swiss Right Wing calls for Retaliation on USA

www.iht.com...

Swiss Giant UBS has a changing of The Gaurd. In a move that could be seen as likely, UBS has chosen Grubel, a former rival executive.

Grübel, who fled East Germany as a child, started at Deutsche Bank in 1961. Ten years later, he joined an investment banking unit of Credit Suisse, where he initially worked as a bond trader in Zurich. He served as chief executive from 2004 to 2007.

What is more, Credit Suisse and UBS are bitter rivals, and the arrival of Grübel at UBS's drab neo-classical headquarters in downtown Zurich is akin to a star player for Manchester United taking over as coach of Manchester City.

www.bloomberg.com...

It’s like this: So far, the only clients exposed were suspected of tax fraud, which involves lying to the government and is illegal in both countries. Mere tax evasion, where you just don’t get around to reporting your assets or income, isn’t a crime in Switzerland. And under a bilateral agreement, only conduct that is criminal in both countries can prompt Swiss banks to turn over information on their customers.

Prying Information

Now the U.S. is trying to pry open the crack to look for evaders. In federal court in Miami, the IRS demands that the bank name the American holders of more than 52,000 secret accounts.

Neither side can afford to lose the fight.

If UBS complies, Switzerland can prosecute the bankers for violating Swiss law and lift UBS’s banking license.

That isn’t all. The release of thousands of names would crumble public confidence in legendary Swiss bank secrecy, shrinking Switzerland’s international banking business, a linchpin in the economy.

Swiss authorities can’t let that happen, any more than U.S. authorities can walk away from the fight.

And refreshingly, another view, that is off the beaten trail.

www.sovereignsociety.com...

Had the U.S. done that or had the DoJ indicted UBS, it would have put the bank out of business in America with a loss of thousands of UBS U.S. jobs. It would also have caused a probable collapse of the bank itself, with major Swiss and global economic repercussions. (UBS' bad management already has lost over US$50 billion in the subprime mortgage crisis).

But even U.S. prosecutors knew the global financial system could hardly weather the destruction of UBS by American prosecutors. (And that would have been ingratitude. As I revealed last year, candidate Obama was very cozy with UBS officials and UBS was one of his biggest donors, giving $505,017 to his 2008 Presidential campaign).

New meetings scheduled. Agenda is kept under wraps.

www.ft.com...

Switzerland's justice minister will today meet her US counterpart in a crucial week in UBS's efforts to fight attempts to reveal to US authorities more names of rich American clients with undeclared accounts.

Eveline Widmer-Schlumpf's meeting with Eric Holder, the new US attorney-general, comes amid belated attempts by Bern to counter the impact of the US legal onslaught against Switzerland's biggest bank and, more broadly, hallowed bank secrecy.

Swiss government officials declined to disclose the agenda of the meeting. But the tribulations of UBS, which last month agreed a $780m deal with the US Department of Justice to settle criminal charges about its private banking activities, were expected to be prominent.

Looks like the U.S. Government will perhaps back down.

www.bloomberg.com...

At a meeting today, the government decided privacy protection for bank clients should be preserved, though international cooperation on tax offences should be improved. The government also set up a group of experts that will look at issues such as how to define tax fraud and will advise on talks with other countries, Merz said at a news conference in Bern.

Levin, who oversees the U.S. Senate subcommittee investigating UBS, proposed new laws this week to stop Americans from using offshore financial centers to evade taxes, supporting legislation previously sponsored by President Barack Obama. The Michigan Democrat wants to impose tougher requirements on taxpayers with offshore accounts and give the Treasury Department the authority to take action against foreign jurisdictions that impede tax enforcement.

‘Cash Cow’

“Bank secrecy is a cash cow in Switzerland,” Levin said at the March 4 hearing held by the Senate’s Permanent Subcommittee on Investigations. “Conduct that actively facilitates tax evasion amounts to a declaration of war by offshore secrecy jurisdictions against honest, hardworking taxpayers. We’re determined to fight back and end the abuses inflicted on us by those tax havens.”

U.S. Treasury Secretary Timothy Geithner told the Senate Finance Committee on the same day that the government will mount an “ambitious” program to crack down on companies that use offshore locales to avoid paying taxes.

Merz said last week he’s willing to make an agreement with the U.S.

And the bottom line...

UBS, Switzerland’s largest wealth manager, has lost 22 percent of its market value since the U.S. obtained the client data last month, compared with a 17 percent drop in the 65- member Bloomberg Europe Banks and Financial Services Index. It has beaten the index in all but three years since the start of the decade.

“The government put its head down and ignored the situation and then panicked when they realized they were up against a wall,” Cocca said. “They’ll have to give in to reduce the pressure on Switzerland.”

US withdraws request for Swiss help on UBS case, involving UBS based in
Switzerland concerning tax fraud by clients.

U.S. authorities have withdrawn a request for administrative assistance from Switzerland concerning tax fraud by clients of UBS (UBS.N)(UBSN.VX), the Swiss government said on Thursday.
A spokesman for Switzerland's Federal Tax Administration said the request was related to a criminal case, which was settled after UBS agreed to identify certain U.S. clients and pay a $780 million fine.

"The U.S. Internal Revenue Service (IRS) has withdrawn the request for administrative assistance submitted in July 2008 in the case involving UBS," the Federal Tax Administration said in a statement.

UBS disclosed the identity of about 300 U.S. clients to avert criminal charges that Swiss regulators said would have put its existence at risk and hurt the economy, a decision that has brought the country's banking secrecy into question.

UBS is still fighting a U.S. civil case that is seeking to force the bank to reveal the names of 52,000 clients suspected of dodging taxes by stowing cash in Swiss accounts and is seen as a threat to Swiss banking secrecy and UBS's reputation.

The IRS declined to comment.

www.reuters.com...

This is not really about bank secrecy; it is about solving an internal problem by finding an enemy outside to bash, for the economic meltdown.

Under pressure from other countries, Switzerland, which is estimated to account for about a third of the world’s $11,000bn in clandestine personal wealth, agreed this month to ease its bank secrecy laws and accept international standards on tax transparency.

www.ft.com...

This is juicy!! Could our civilization actually be about to throw off the yokes of indentured slavery? This makes me believe a new age is maybe possible. We got them right where it hurts and called their bluff. They just gave the biggest tell ever.

The Swiss are going to resisit as long as they can...This just in after the G20 Summit...

Switzerland will keep defending its strict banking secrecy after making some concessions but expects more pressure from a global crackdown on tax havens due to the economic crisis, a minister said on Thursday.

Swiss Economy Minister Doris Leuthard made the comments in a speech in Zurich as the G20 summit in London announced it wanted to fight tax havens that did not share information.

uk.reuters.com...

Originally posted by Anonymous ATS
stupid Swiss...

you guys should be cheering that 52,000 of the wealthiest of Americans are about to have to admit that they don't pay taxes while 99% of the rest of us do.

It's one thing to argue that tax is illegal/immoral, it's another to cheer rich people screwing over the working poor.

A fair system taxes all or none... not just those that can't afford to hide their money.

Finally one sane sound voice. Hats off to you sir!

And it is apparently from a non-member ! Figures!


The Swiss think they are being "cute" with this talk of "retaliation". The US can also retaliate by throwing UBS out on its ass out of America. When you operate in OUR country, you play by OUR rules.

Does the Swiss right-wing party know how much business UBS does in America ?? I think not.

It looks as if the Swiss were (for now) able to appease the powers that be (G20) by simply adding a few promises...other smaller tax havens were not so lucky...

The Philippines was among four nations blacklisted as uncooperative tax havens yesterday after Group of 20 leaders declared the age of banking secrecy was over and said they would no longer tolerate shady havens draining away badly needed tax revenue.

At the request of the G20 summit of rich and developing nations, the Organization for Economic Cooperation and Development (OECD) named the Philippines, Uruguay, Costa Rica and the Malaysian territory of Labuan as the worst offenders, saying they had refused to adopt new rules on financial openness.

Leaders had agreed to name and shame the countries that refuse to exchange tax information, which could result in tough sanctions – including the withdrawal of financing by the World Bank or International Monetary Fund.

“The time of banking secrecy has passed,” French President Nicholas Sarkozy said following the summit. “Everyone around the table wants an end to tax havens. Everyone knows we need sanctions.”

The announcement reflects mounting concern that banking secrecy in tax havens has helped to worsen the economic crisis by disguising the true value of some global assets. Anti-poverty activists say such places provide corrupt officials places to stash illicit funds, often depriving poor nations of needed resources.

The OECD has divided countries into three categories: those who comply with rules on sharing tax information, those who say they will but have yet to act and nations which have not yet agreed to change banking secrecy practices.

Switzerland and Liechtenstein, which both have strong banking secrecy traditions, said last month they would adopt international rules on tax cooperation and were ready to comply with G20 demands.

ph.news.yahoo.com...