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View Diary: UBS, the IRS and Phil Gramm (131 comments)

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  •  Switzerland will never give up bank secrecy. (2+ / 0-)
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    blueyedace2, linkage

    Who's gonna hold all the money during the next world war?  That's what the Swiss do.  And they are ever so discreet.

    •  I think things are changing (12+ / 0-)

      Switzerland is worried and in grave danger of going the way of Iceland.  They are extremely over leveraged in Eastern Europe.  People bought mortgages in Swiss Francs for better interest rates but were still paid in home currencies.

      Now those currencies have fallen about 1/3 of their value and people cannot pay them back.  Switzerland is afraid of insolvency.

      Leichtenstein is the other and more secretive problem.  Here in Germany we just had one of the biggest tax-evasion scandals in history last year which caused very bad diplomatic relations with the principality.

      This is very bad for them entering the Maastrict Treaty, which created the EU, euro, and allows for passport free travel between EU countries, among other things.  But they are beginning to realize that they need to be in the EU with the Euro looking at Iceland and her Krona as an example.  Switzerland also as they teeter on the verge of bankruptcy.

      Look at Iceland, realize that Switzerland now finds herself in very similar circumstances, and the secrecy thing goes out the window.  To join the EU they will have to get rid of the secrecy, joining the EU now may be a means of survival.

    •  The Swiss are feeling the heat (1+ / 0-)
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      there may be outrage now, but in the end it's a simple calculation, What's better, do away with bank secrecy and maintain relations with the rest of the West and therefore keep legitimate banking business or deal with sanctions (via prohibitions of Swiss banks doing any business with citizens of Western countries) that hurt the sector that is most important for the Swiss.

      We don't inherit the world from the past. We borrow it from the future.

      by minorityusa on Fri Feb 20, 2009 at 08:26:33 PM PST

      [ Parent ]

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