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View Diary: Swiss Bank Folds After US Criminal Conviction (43 comments)

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  •  A little background, (9+ / 0-)

    Wegelin was founded in 1741. Earlier this year, the bank sold most of its assets to another Swiss bank because investors were worried about the US tax-evasion investigation. A snip for documentation:

    (Reuters) - On the morning of January 27, employees at the St. Gallen headquarters of Wegelin, Switzerland's oldest private bank, were told to expect an important announcement from Konrad Hummler, Wegelin's leading partner. Other Wegelin branches across Switzerland, also alerted, tuned in to the company-wide address system.

    Speaking in Swiss-German, Hummler announced the bank had sold most of its assets to another Swiss bank. According to a person familiar with the matter, Hummler called it a last-ditch effort to preserve employees' jobs amid withdrawals of assets by investors who were increasingly worried about a growing problem: a U.S. federal investigation into Wegelin's sale of tax-evasion services to wealthy Americans. The dark-suited bankers and conservatively dressed office clerks, said the person, were in shock and tears.

    In May, Bloomberg reported other transnational banks turning away Americans who wanted to evade taxes.
    HSBC decided last July that it would no longer offer wealth-management services to Americans from locations outside their home country after tax authorities stepped up a probe of the London-based bank’s U.S. clients.

    Americans would be “better served” by private bankers in the U.S., Goh Kong Aik, a spokesman for the firm in Singapore, said in an e-mail. He declined to say whether those who already have private-banking accounts abroad will be allowed to remain customers, except that they would be helped through an undefined “transition process.”

    Deutsche Bank said it terminated securities accounts held abroad by people with U.S. residency as of mid-2011. The action didn’t include checking or savings accounts and didn’t affect citizens living outside the U.S. The Frankfurt-based bank said “only a small number of customers” were affected.

    Americans were lining up to give up their citizenship:
    Rich Americans renouncing U.S. citizenship rose sevenfold since UBS AG (UBSN) whistle-blower Bradley Birkenfeld triggered a crackdown on tax evasion four years ago.

    About 1,780 expatriates gave up their nationality at U.S. embassies last year [2011], up from 235 in 2008, according to Andy Sundberg, secretary of Geneva’s Overseas American Academy, citing figures from the government’s Federal Register. The embassy in Bern, the Swiss capital, redeployed staff to clear a backlog as Americans queued to relinquish their passports.

    Don't believe it because you don't see it on tee-vee? The corporate media are distinctly not interested in informing the electorate. Rather they propagandize for the wealthy who control their comrades, who are also soulless entities. What they don't report is what matters ;)

    Like this.

    "Let each unique song be sung and the spell of differentiation be broken" - Winter Rabbit

    by cotterperson on Thu Jan 03, 2013 at 08:29:56 PM PST

    •  is there a parallel action within swiss banking (3+ / 0-)

      circles to sacrifice a goat and this was it?

      My ignorant impression is their banking system is extremely central to the economy and they would be harsh with anybody that got caught and was compliant and forced to out customers and endangered the Seekrits.

      This machine kills Fascists.

      by KenBee on Thu Jan 03, 2013 at 08:46:45 PM PST

      [ Parent ]

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