Yet another list of employees turned over by HSBC, lawsuit filed against Swiss Federal Council

8 thoughts on “Yet another list of employees turned over by HSBC, lawsuit filed against Swiss Federal Council”

1. There seems to be an incredible amount of turbulence in international banking right now, focusing on Switzerland.  My guess is that it is also related to the CHF/€ currency peg.

   The ‘Singapore Connection’ German Tax Investigators Set Their Sights on UBS

2. And since we are talking Switzerland again, let me put this link here too… 

   Apologetic Swiss banks sweat it out as U.S., Europe mull redress

   Switzerland’s efforts to spur along a deal include tentatively agreeing with the U.S. Foreign Account Tax Compliance Act, an anti-tax evasion law known as FATCA.

   The rules on enforcing FATCA have yet to be finalised, but many Swiss bankers see it as a crippling blow that effectively prevents their clients from investing in U.S. securities.

   Acquiescing to FATCA was a tactic to build goodwill for a Swiss bank deal, a source close to the talks said.

   But the strategy doesn’t seem to be paying off.

   Washington is now pushing banks in Switzerland to divulge names and financial details of wealthy Americans hiding money in their accounts, spurred on by success in 2009 when UBS handed over data to avert a criminal indictment.

   “Contrary to what may appear as inactivity, the U.S. is in fact keeping the pressure on Swiss banks, which are like mice before a snake,” said Martin Janssen, professor of finance at the University of Zurich. “The U.S. is really maximising its position here.”

   The tension is such that Swiss bankers are afraid they will be personally targeted by U.S. officials if they leave the country, after Credit Suisse and Julius Baer handed over employee names to U.S. authorities.

   Originally a gesture towards cooperation, the move now has many Swiss bankers hunkered down at home, fearful of arrest and extradition if they leave Switzerland.

3. How is this even legal? Aren’t there any employee data protection laws in Switzerland? This is way over the top – Names of US clients hiding money…ok. Names of Swiss bankers working in Switzerland? No way, and if they have broken any Swiss laws (unlikely I guess?) then it is an internal Swiss matter to deal with. 

   How much space is being wasted in US prisons to hold all the “tax cheats”? Just make it so that those with outstanding tax issues have to pay what is owed with a penalty – A prison sentence and all of this over the top investigation of Swiss bankers is way over the top, generates terrible goodwill and is financially a waste of resources for little in return.

4. The list of bankers involved was part of what the US were asking back in December.
   Eveline Widmer-Schlumpf (member of the Swiss Federal Council, head of the Federal Department of Finance (the Swiss finance minister) and President of the Swiss Confederation for the year 2012) agreed to the transfer. She now puts the responsibity on the banks, claiming she doesn’t know what she should be shocked about.
   This is getting real ugly. My guess is that she’s either going to have to step down or face legal consequences.

    

5. @Christophe  I fully agree.   Eveline Widmer-Schlumpf must resign.  We need a President that is not afraid to stand up for the sovereignty of Switzerland and the rights of its people. 

   And when I say resign, I mean as President, and as Federal Counselor.

6. @Don Pomodoro.  You can find the Swiss Federal Law on Data Protection here:

   http://www.admin.ch/ch/f/rs/c235_1.html

7. I’m really kind of surprised the Swiss didn’t try work out some sort of deal with the US like the deals they have with the UK and Germany where they withhold tax and send it to those respective governments. Maybe they did, and in typical US-fashion, the US rejected it because the US thinks its entitled to everything because it’s the Best Country in the World.

8. @geeez

   I remember someone posting a month or so ago here  about how the culture in the US is heavily skewed towards punishing due to its puritan heritage. At this point it certainly seems like they are more interested in just lashing out rather than with quietly collecting the taxes owed like the other sensible countries are doing.