Egyptian President Hosni Mubarak Resigns, Hands Power to Military – Mubarak Assets Frozen By Swiss Government

Mubarak Resigns as Egyptian President, Hands Power to Military (Bloomberg):

Hosni Mubarak stepped down as president of Egypt and handed power to the military, bowing to the demands of protesters who have occupied central Cairo for the past three weeks demanding an end to his 30-year rule.


WASHINGTON (CNNMoney) — Switzerland’s government moved Friday to freeze any assets in the country’s banks that might belong to former Egyptian President Hosni Mubarak or his family, the Swiss Federal Department of Foreign Affairs said Friday.

Mubarak ended his 30-year reign Friday, stepping down following 18 days of protests against his rule. (CNN.com Egypt’s Mubarak resigns after 30-year rule)

An official statement from the Swiss Federal Department of Foreign Affairs said the Swiss cabinet had frozen all funds belong to Mubarak or “his circles.”

“The [government] intends in doing so to avoid any risk of embezzlement of Egyptian state property,” the statement read. “At the same time, the cabinet calls on responsible authorities in Egypt to comply with the justified demands of the Egyptian people in a quick, credible, participatory and transparent manner.”

Read moreEgyptian President Hosni Mubarak Resigns, Hands Power to Military – Mubarak Assets Frozen By Swiss Government

Bush Cancels Switzerland Visit (To Address A Jewish Charity Gala) Due To Threat Of Torture Prosecution


Former President George W. Bush laughs while answering questions about his presidency at the Ronald Reagan Presidential Library in Simi Valley, California, November 18, 2010.
Credit: Reuters/Lucy Nicholson

GENEVA (Reuters) – Former President George W. Bush has canceled a visit to Switzerland, where he was to address a Jewish charity gala, due to the risk of legal action against him for alleged torture, rights groups said on Saturday.

Bush was to be the keynote speaker at Keren Hayesod’s annual dinner on February 12 in Geneva. But pressure has been building on the Swiss government to arrest him and open a criminal investigation if he enters the Alpine country.

Criminal complaints against Bush alleging torture have been lodged in Geneva, court officials say.

Human rights groups said they had intended to submit a 2,500-page case against Bush in the Swiss city on Monday for alleged mistreatment of suspected militants at Guantanamo Bay, the U.S. naval base in Cuba where captives from Afghanistan, Iraq and other fronts in the so-called War on Terror were interned.

Read moreBush Cancels Switzerland Visit (To Address A Jewish Charity Gala) Due To Threat Of Torture Prosecution

Guardian Davos Journalist’s Sinister Encounter With The Swiss NWO Riot Police

If ever there were REAL terrorists out there, then why have they never attacked an event run by elitists?

Al Qaeda Doesn’t Exist or How The US Created Al Qaeda (Documentary)

“The truth is, there is no Islamic army or terrorist group called Al Qaeda. And any informed intelligence officer knows this. But there is a propaganda campaign to make the public believe in the presence of an identified entity representing the ‘devil’ only in order to drive the TV watcher to accept a unified international leadership for a war against terrorism. The country behind this propaganda is the US.”
– Robin Cook, Former British Foreign Secretary

It is because there are no REAL terrorists out there.

We the people are all terrorists now.


A policeman pulled me off the train, bound my hands behind my back and frogmarched me into an icy field by the rail track


Photograph of Swiss Police boarding a train leaving Davos after the World Economic Forum (WEF). Photograph Andrew Clark for the Guardian

My day began listening to George Osborne debate the fragility of the global economy. It ended sitting on the floor of a freezing underground car park, hands bound behind my back, in the custody of Swiss riot police.

A peculiar ordeal in ostensibly the world’s most peaceful nation began when, leaving Davos after four days covering the World Economic Forumsummit, my taxi to the Swiss resort’s railway station got clogged in traffic caused by an anti-capitalist demonstration. I hopped out and walked past a line of police to reach a platform where an uneasy mixture of demonstrators, skiers in full gear and WEF delegates were milling around. There were a few yells and chants – and the tinkling of glass being broken somewhere nearby.

A train to Zurich arrived and as I boarded, my carriage filled with protesters handing out beers and leaflets. They were a friendly enough bunch, mostly in their late teens and twenties, and the journey began uneventfully, albeit to a soundtrack of loud europop. After 30 minutes or so, a convoy of police vans screamed down the mountain, sirens blaring, on a road alongside the railway, and overtook the train. It stopped and was surrounded by riot police wearing full body armour, carrying shields and bearing what appeared to be guns capable of firing rubber bullets. Minutes later, a woman burst into our carriage eyes streaming and squealing in pain after being pepper sprayed for sticking her head out the window to gesture at police.

It dawned on me that this was serious – and that it could also be newsworthy. When the police, dressed in almost comically sinister in Robocop-style gear, came into my carriage, I took a few photos of them with my BlackBerry and attempted a video (which didn’t come out). The cops went through with dogs, picking anyone who looked vaguely like a protester and ordering them off the train. Skiers and those not wearing anarchist fashion were left – but selection was fairly arbitrary. A Greenpeace activist, Bruno Heinzer, who had been in Davos for a WEF fringe event, was bemused to find that his younger colleague and girlfriend were taken off, while he was left alone. I was initially ignored until a policeman twigged my BlackBerry and, deaf to my protestations, he pulled me off the train, suitcase, laptop bag and all. With about 50 others, I had my hands bound behind my back by plastic ties. We were searched and the contents of our pockets were put in plastic bags around our necks. We were frogmarched into a snowy field alongside the railway line, and ordered to wait,surrounded by armed police.

When I explained that I was a journalist, I was unconvincingly told in broken English that I looked like a “picture on a wall” of a rioter in Davos, which I took to mean I looked like some sort of photofit picture. I asked my arresting officer if he really believed I’d been rioting in a Banana Republic overcoat, dragging a wheely bag and a laptop. He affected incomprehension. It got dark and very cold as we shivered in the snow. Eventually, the police herded us into vans and drove us to a police station in a town called Landquart. Incongruously, the Monkees’ I’m a Believer blasted out from the van’s radio. We were marched down a ramp into an underground car park beneath the police station where we were ordered to sit, around the walls, still handcuffed, and forbidden from talking. Six police officers stood guard and forbade conversation – one young woman was made to sit in a distant corner, facing the wall, primary school-style, for talking. Every so often, the motion-sensitive lights went off, plunging us into pitch darkness.

One by one, we were taken upstairs to the police station, at a rate of perhaps one every 15 minutes. After an hour or so, a policeman finally listened to my appeals and, examining my passport and press card, took me upstairs. I was photographed, mugshot-style, holding a number. Then an English-speaking senior officer ordered me to delete any pictures taken on the train, and to rip out any pages from my notebook relating to the incident. I declined, asking him whether it was truly illegal in Switzerland to take pictures of the police. He replied that policing the World Economic Forum was a “special zone” and that “special rules” applied. “You have one minute. You can do this and go or, if you don’t, you stay here,” he said. Again demurring, I asked to make a phone call – which prompted the assembled police to go into a huddle. Instead, the senior officer reached for his phone himself and made a long, animated call in German. More discussion ensued when he had hung up. Then he strolled over and he snapped: “You can go back to your country.”

Read moreGuardian Davos Journalist’s Sinister Encounter With The Swiss NWO Riot Police

Here Is Who Just Got Their A$$ Saved By The Huge Euro Bailout

Guess who will pay for this bailout? That’s right. You will pay for it all.

See also:

Federal Reserve Opens Line Of Credit To Europe (AP)

Stephen Pope of Cantor Fitzgerald on ECB buying government bonds: ‘This is total, undiluted quantitative easing.’ (Forbes)

ECB Resorts to ‘Nuclear Option,’ Intervenes in Bond Market to Fight Euro Crisis (Bloomberg)


european-central-bank-ecb

So Europe announced its gigantic bailout last night, consisting of a fund worth nearly $1 trillion, alongside ECB quantitative easing.

Stocks are going nuts. Dow futures are up nearly 400 points.

But the real winning market is the CAC-40, the French index. It’s up 9%. That’s because French banks were among the most exposed to Greece, and now they just got their butts saved.


French banks represent over 25% of claims. That’s why the CAC-40 is up 9%.

french-banks-represent-over-25-of-claims-thats-why-the-cac-40-is-up-9

Banks: Swiss banks represent over 20% of claims

banks-swiss-banks-represent-over-20-of-claims

German banks represent close to 15% of claims. Germany’s market is rallying big.

german-banks-represent-close-to-15-of-claims-germanys-market-is-rallying-big

Read moreHere Is Who Just Got Their A$$ Saved By The Huge Euro Bailout

Swiss Catholic Church Investigating 10 Abuse Cases

(Reuters) – The Swiss Catholic Church is investigating around 10 allegations of abuse by clergy, including some acts committed since 2001, making Switzerland the latest country to be hit by a wave of scandal sweeping Europe.

In a pastoral letter on Saturday, Pope Benedict apologized to victims of child sex abuse by clergy in Ireland and ordered an official inquiry there.

The Swiss Bishops’ Conference said the Pope’s letter confirmed the church in Switzerland had acted correctly in dealing with cases of abuse, and added that it had already worked together with victims to report abuse to the authorities.

“The letter supports the guidelines that the Church introduced for cases of sexual abuse in 2002,” said Conference spokesman Walter Mueller.

The Diocese of Chur, in eastern Switzerland, said it was investigating around 10 complaints of abuse. “Our primary goal now is to help the victims,” the bishop’s representative, Christoph Casetti, told national Swiss television station SF1.

The abbot of a monastery in the diocese said at least three of the 77 monks at Einsiedeln had committed acts of abuse since he took up office in December 2001, but no legal action had been taken in any of the cases.

Read moreSwiss Catholic Church Investigating 10 Abuse Cases

More UBS Clients Win Ruling Blocking Data Transfers to US

ubs
A pedestrian enters the UBS headquarters on Bahnhofstrasse in Zurich (Bloomberg)

Feb. 26 (Bloomberg) — A Swiss court ordered tax officials to drop two more cases involving UBS AG account holders, adding urgency to the government’s effort to find a political solution that will preserve a data-sharing agreement with the U.S.

The Federal Administrative Court, in a decision published today, told Switzerland’s tax authority to comply with an earlier ruling that blocked it from sending the U.S. information on 26 UBS customers. The court in Bern said Switzerland may only lift bank secrecy rules when there is evidence of tax fraud.

The ruling increases pressure on the Swiss to find a way to salvage the agreement to hand over data on as many as 4,450 UBS account holders as part of a U.S. crackdown on tax evasion. Ministers said this week they will ask the parliament to approve the U.S. settlement to get around the court rulings.

Read moreMore UBS Clients Win Ruling Blocking Data Transfers to US

Oldest Swiss Bank Advises Its Clients to Get Out of All US Securities

swiss-bank-wegelin

Wegelin bank to pull out of US

Swiss private bank Wegelin announced on Tuesday that it is to stop doing business in the United States.

The St Gallen-based bank, Switzerland’s oldest, said the decision had been taken in response to stricter measures introduced in the US against tax dodgers and planned changes to estate tax, which would make some non-US citizens liable to tax if they inherited US securities.

In a letter to investors it said Swiss banks were likely to find themselves in an untenable position, as they would be expected to know which clients were liable to pay US tax – “an impossible undertaking”, given the lack of clear definitions in the matter.

The danger of inadvertently making false declarations to the US tax authorities will be too great, it explained.

It added that it believes the US overestimates its attraction as a financial centre, and is advising its clients to get out of all US securities.

Read moreOldest Swiss Bank Advises Its Clients to Get Out of All US Securities

Swiss bank UBS to hand over names of 4,450 clients to US

“Shulman pointed out that U.S. citizens have until Sept. 23 to voluntarily disclose their tax-avoidance or face “stiffer civil or possible criminal” charges. He added that U.S. citizens with hidden UBS accounts can still voluntarily disclose their account information to U.S. tax authorities before the deadline even if they previously received a notice from the Swiss bank. He added that bank notices will be sent out in stages and many letters may not be received by account holders until after the Sept. 23 voluntary deadline.”


Tax evasion just got a lot harder, IRS commissioner says

ubs-logo-zurich

WASHINGTON (MarketWatch) – Thousands of Americans who thought they had a secret Swiss bank account will have their names and account details given to the U.S. Internal Revenue Services under an agreement announced Wednesday among U.S. and Swiss authorities and the Swiss bank UBS.

The IRS said Americans would no longer be able to evade taxes so easily by hiding their assets in offshore accounts.

The agreement comes as U.S. tax authorities conduct a criminal investigation into Americans who used Swiss bank accounts at UBS AG to avoid paying U.S. taxes.

The settlement follows demands from the U.S. authorities that the bank hand over details on more than 50,000 customers. According to the settlement, U.S. tax authorities will gain access to 4,450 accounts of Americans who have accounts with UBS, and will drop a lawsuit against UBS in federal court demanding the names.

However, the agency expects to have access to hundreds of additional accounts through other agreements. An IRS official said the total number of names disclosed could be in the “high 5,000s.”

“Wealthy Americans who have hidden their money offshore will find themselves in a jam,” said IRS Commissioner Douglas Shulman. “You can expect us to continue to be aggressive with institutions that are helping Americans avoid taxes.”

Read moreSwiss bank UBS to hand over names of 4,450 clients to US

Switzerland Would Seize UBS Data Sought by U.S.

ubs_headquarters
The UBS AG headquarters are seen on Paradeplatz in Zurich on May 1, 2009. (Bloomberg)

July 8 (Bloomberg) — Switzerland said it would seize UBS AG data to prevent the U.S. Justice Department from pursuing a U.S. court order seeking the identities of 52,000 American account holders in a crackdown on tax evaders.

The assertion came in court papers yesterday in federal court in Miami, where the Justice Department sued UBS on Feb. 19, a day after the bank avoided U.S. prosecution for helping wealthy Americans evade taxes. The U.S. effort to enforce a summons seeking the names would force UBS to violate Swiss laws barring disclosure of such data, the filing said.

The Swiss government “will use its legal authority to ensure that the bank cannot be pressured to transmit the information illegally, including if necessary by issuing an order taking effective control of the data at UBS that is the subject of the summons,” according to the filing.

Read moreSwitzerland Would Seize UBS Data Sought by U.S.

The Saga Of The Bearer Bonds; Smuggled Bonds Are Probably Genuine

Update:
The Japanese Bond Smugglers Are Missing (The Business Insider)

US Treasury says bonds seized in Italy are fakes (Reuters)
The US Bearer Bonds ‘Coincidence’ (Must-read)

Related article: Italy Seizes $135 BILLION Of US Bonds: Smuggling Or Counterfeit-Printing?


The German newspaper ‘Die Welt’ (The World) reports:
(Original article: Welt Online , Translation courtesy of Google: Here)

Smuggled Bonds are probably genuine
Geschmuggelte Anleihen sind wohl echt

Bull’s eye for the customs officers:
Volltreffer für die Zöllner:

The smuggled bonds valued at 134 billion U.S. dollars are apparently authentic.

Die geschmuggelten Wertpapiere im Wert von 134 Milliarden Dollar sind offenbar echt.

The Italian financial police caught two Japanese, trying to carry multi-billion bonds in the false bottom of their suitcase to Switzerland.
Die italienische Finanzpolizei hatte zwei Japaner ertappt, die im doppelten Boden eines Koffers milliardenschwere Anleihen in die Schweiz schaffen wollten.

Note that this has received very little coverage in the so-called “mainstream US media” – but it is everywhere in Europe and Asia.

Japan, for its part, oddly said the following as soon as this story started to hit the press:

“We have complete trust in the fact that the U.S. views its strong-dollar policy as fundamental,” Yosano, 70, said in an interview in Tokyo on June 10 before attending a Group of Eight meeting of finance ministers starting today in Italy. “So our trust in U.S. Treasuries is absolutely unshakable.”

Uh huh. And the Japanese said in December of 1941 that all was well too. Anyone remember what happened on the morning of the 7th?

Let’s apply a little “Occam’s Razor” to this entire story.

You’re not going to walk into a bank with $130 billion in bearer bonds and cash them. Nor are you going to sell a bond with a $500 million face value to someone without them authenticating it. They will be authenticated before you get one dime out of them – no matter who you think you’re going to “give” them to.

So if they’re fakes and you’re “just screwing around”, there is no reason to hide them. Nor is there any particular reason to have authentic and recent original bank documents in your luggage with them, as has been reported.

Read moreThe Saga Of The Bearer Bonds; Smuggled Bonds Are Probably Genuine

Italy Seizes $135 BILLION Of US Bonds: Smuggling Or Counterfeit-Printing?

Update :
The Japanese Bond Smugglers Are Missing (The Business Insider)
US Treasury says bonds seized in Italy are fakes (Reuters)
The US Bearer Bonds ‘Coincidence’ (Must-read)
The Saga Of The Bearer Bonds; Smuggled Bonds Are Probably Genuine


Ok, this was rumored several days ago, but now I can find actual news reportsat least, outside the US:

Milan (AsiaNews) – Italy’s financial police (Guardia italiana di Finanza) has seized US bonds worth US 134.5 billion from two Japanese nationals at Chiasso (40 km from Milan) on the border between Italy and Switzerland. They include 249 US Federal Reserve bonds worth US$ 500 million each, plus ten Kennedy bonds and other US government securities worth a billion dollar each.

Those sound like Bearer Bonds – at least the Kennedy ones do.

We no longer issue those (nor does pretty much anyone else) for obvious reasons – they’re essentially money and can be had in VERY large size, making them great vehicles for various illegal enterprises.

But folks: This is $134.5 billion dollars worth.

If they’re real, what government (the only entity that would have such a cache) is trying to unload them?

If they’re fake, this is arguably the biggest counterfeiting operation ever, by a factor of many times. I’ve seen news about various counterfeiting operations over the years that have made me chuckle, but this one, if that’s what it is, is absolutely jaw-dropping.

The cute part of this is that if the certificates are real Italy just got a hell of a bonanza – their money laundering laws provide for a statutory 40% penalty for failure to declare instruments and cash in excess of $10,000 Euros, which means they’d garner a close-to-$40 billion dollar windfall.

That ought to help their budget problems!

Notice, by the way, that the US Media has totally ignored this story – even though the securities in question are allegedly US instruments.

Gee, I wonder why? Might the authorities know they’re real and be just a wee bit nervous that disclosure of a sovereign attempting to covertly dump nearly $140 billion in debt could cause a wee bit of panic, given that we’re running nearly $200 billion a month in deficits?

Inquiring minds want to know what’s really going on here.

Read moreItaly Seizes $135 BILLION Of US Bonds: Smuggling Or Counterfeit-Printing?

Flu Reaches 11 Countries, 331 Cases Confirmed by WHO


Inspectors for swine flu walk through a terminal at Narita International Airport in Narita City, Chiba Prefecture, Japan on April 30, 2009. Photographer: Haruyoshi Yamaguchi/Bloomberg News

May 1 (Bloomberg) — Flu reached 11 countries, as governments closed schools, planned for vaccine production and tapped emergency stockpiles of antiviral medicine.

Genetic tests have confirmed more than 331 people have the strain originally labeled swine flu, according to the World Health Organization’s Web site. Hundreds more cases are suspected in New York, Mexico, Australia and New Zealand. The WHO said thousands of samples from sick patients are backlogged for testing, and disease trackers are looking at whether an outbreak in Spain should trigger a declaration of a pandemic.

The Geneva-based health agency raised its six-tier alert to 5 on April 29 and said a move to the next and final level, for the world’s first influenza pandemic since 1968, may soon be made. The WHO urged countries to make final preparations against a disease that may sweep across the globe, preying on a world population that has no natural immunity to the new virus.

Read moreFlu Reaches 11 Countries, 331 Cases Confirmed by WHO

Swine Flu Container Explodes on Train

When a container holding swine flu exploded on a Swiss train on Monday, it could have led to a nightmare scenario. Luckily the virus was not the mutated swine flu that has killed around 150 people in Mexico and that has already spread to parts of Europe.

It has all the hallmarks of a disaster movie: A container filled with the swine flu virus explodes on a busy train. But that’s exactly the scenario that briefly caused the Swiss authorities some alarm on Monday evening. In the midst of global fears of a swine flu pandemic, a container with swine flu exploded on a train carrying over 60 people.


The Intercity train is seen in Lausanne station after it had been evacuated.

Luckily, however, it was not the mutated swine flu virus that has killed around 150 people in Mexico. The police quickly reassured the public that there was no danger of any infection.

According to the police, a lab technician with the Swiss National Center for Influenza in Geneva had travelled to Zurich to collect eight ampoules, five of which were filled with the H1N1 swine flu virus. The samples were to be used to develop a test for swine flu infections.

Read moreSwine Flu Container Explodes on Train

Swiss banks ban top executive travel, because of fears they will be detained

Switzerland’s private banks have started to ban their top executives from travelling abroad, even to neighbouring France and Germany, because of fears they will be detained as part of a global crackdown on bank secrecy.

The head of one leading private bank in Geneva said the growing determination of countries such as the US and Germany to tackle tax evasion and secrecy meant banks felt they had to take extra measures to protect employees.

“Some banks have taken this precaution,” he said. “If today I go to Germany to visit two banks I deal with…German customs can take me in and question me.”

The travel bans, which have not been brought in by all banks, have focused on those visiting the US, following the detention there last year of a senior private banker from UBS, Switzerland’s biggest bank, as part of a federal tax investigation.

The head of the private bank, which itself has no travel restrictions, said: “Today if you are a banker from Switzerland going to the US you have to fear you will be taken in for questioning. I am thinking twice about going to America.”

However, four people in the private banking industry in Geneva told the Financial Times of banks bringing in total travel bans for staff, even for adjoining European countries.

“Private bankers aren’t even travelling to France. The partners are not leaving Geneva at all,” said a senior industry figure close to several private banks. No bank contacted by the Financial Times wanted to discuss the matter publicly.

The restrictions come ahead of next week’s Group of 20 summit where a clampdown on tax havens is set to be discussed.

Read moreSwiss banks ban top executive travel, because of fears they will be detained

UBS Sued by U.S. to Disclose Names of Up to 52,000 Holding Secret Accounts


The UBS AG logo hangs on the bank’s headquarters on Paradeplatz in Zurich, on Feb. 7, 2009. Photographer: Christophe Bosset/Bloomberg News

Feb. 19 (Bloomberg) — The U.S. government sued UBS AG, Switzerland’s largest bank, to try to force disclosure of the identities of as many as 52,000 American customers who allegedly hid their secret Swiss accounts from U.S. tax authorities.

U.S. customers had 32,940 secret accounts containing cash and 20,877 accounts holding securities, according to the Justice Department lawsuit filed today in federal court in Miami. U.S. customers failed to report and pay U.S. taxes on income earned in those accounts, which held about $14.8 billion in assets during the middle of this decade, according to the court filing.

“At a time when millions of Americans are losing their jobs, their homes and their health care, it is appalling that more than 50,000 of the wealthiest among us have actively sought to evade their civic and legal duty to pay taxes,” John A. DiCicco, acting assistant attorney general in the Justice Department’s tax division, said in a statement.

The lawsuit came a day after UBS agreed to pay $780 million and disclose the names of about 250 account holders to avoid U.S. prosecution on a charge that it helped thousands of wealthy Americans evade taxes. The U.S. and Zurich-based UBS disagreed over how many account holders the bank must disclose to the Internal Revenue Service, agreeing to resolve it in court.

Read moreUBS Sued by U.S. to Disclose Names of Up to 52,000 Holding Secret Accounts

Record Swiss loss of SFr20bn for UBS

UBS on Tuesday announced the highest loss in Swiss corporate history as Europe’s biggest casualty of the credit crisis said it lost nearly SFr20bn ($17bn, €13.2bn) in 2008.

The loss, which was above market expectations, was swollen by a SFr8.10bn loss in the fourth quarter, and came in spite of a surprise SFr1.73bn tax benefit and a reclassification of assets that allowed the bank to avoid recognising a further trading loss of about SFr3bn.

UBS, which has come under severe political pressure in Switzerland after a government bail out last October, said it was slashing bonus payments. Variable compensation in the investment bank, the heart of its problems, will be 95 per cent lower than the previous year, and 80 per cent lower for the group overall. Total bonuses paid will fall to SFr2.2bn.

Read moreRecord Swiss loss of SFr20bn for UBS

Fate of UBS hangs on tax evasion case

The future of UBS, the giant Swiss bank, rests on the outcome of tense negotiations with US investigators as its long-running multi-billion-dollar tax evasion case concludes this month.

A series of hearings in Washington over the next four weeks will determine whether UBS faces criminal prosecutions and possibly even the loss of its US bank licence.

The bank is being investigated by US authorities for its alleged part in what is claimed to be a massive tax evasion scheme. The US has accused UBS of helping rich Americans hide billions of dollars. Last November, a senior member of the executive board of UBS was charged by US authorities with tax evasion. He has resigned from the board to defend himself. UBS has been co-operating with investigators and has made it plain that it is taking the issue seriously.

Read moreFate of UBS hangs on tax evasion case

UBS loses favour with angry Swiss

It has been a hard year for the biggest Swiss bank, UBS. After losing millions in the US sub-prime mortgage market, it has had to beg the Swiss government for help. As Imogen Foulkes reports, its reputation in Switzerland may never recover.

Swiss shareholders are angry that the value of their shares has plummeted

In Zurich, UBS head office sits astride Paradeplatz – Parade Square to you and me.

But in recent months, the Swiss have renamed it Piratenplatz – or Pirate Square – to signify what they believe is the daylight robbery that has taken place over the last 12 months. Not of their biggest bank, but by it.

When the news began to trickle out that UBS was in big trouble because of its exposure to sub-prime mortgages, there was first surprise, then concern, and then finally, as the multi-billion pound extent of the losses became clear, fury.

I remember going to an emergency shareholders meeting earlier this year.

Touch their money and the Swiss get mad
Bernhard Weissberg
Blick newspaper

UBS has thousands of small shareholders, mostly relatively well-off, mostly elderly, and none of them expecting the value of their shares to be cut in half in a few short months.

Huge bonuses

Read moreUBS loses favour with angry Swiss

UBS Is Closing Down Accounts; U.S. Clients at Risk of Exposure

Swiss banking giant UBS, under investigation by the U.S. government for allegedly helping Americans hide money from the Internal Revenue Service, is closing thousands of accounts, putting clients at greater risk of being exposed, tax lawyers say.

UBS clients have been receiving calls and letters telling them that their Swiss accounts will soon be liquidated. Those who have concealed funds from the IRS have two basic choices: They can take new and potentially difficult steps to hide the money, heightening their risk of being caught and punished severely, or they can come clean, lawyers say.

The backdrop for UBS’s action is that the U.S. government has been pressing UBS and the Swiss government to disclose the names of thousands of Americans with undeclared accounts, while the Swiss have vowed to uphold Swiss legal protections for bank clients.

However, as a practical matter, whether or not the Swiss formally give up the names, UBS’s decision to close the accounts undermines Switzerland’s legendary code of bank secrecy, lawyers said.

“I think the bank’s actions here are likely to compel clients to come out into the open,” said Scott D. Michel, an attorney with the law firm Caplin & Drysdale. “It is a step in the direction of the erosion of bank secrecy,” he said.

Read moreUBS Is Closing Down Accounts; U.S. Clients at Risk of Exposure

Swiss Banker Charged With Conspiring in Massive Tax Fraud

The Justice Department today announced that a senior Swiss banker has been indicted on charges of conspiring to defraud the U.S. government by helping about 20,000 U.S. clients hide $20 billion in assets from the Internal Revenue Service.

The indictment of Raoul Weil alleged that he conspired with a host of others at his bank, overseeing a business that employed encrypted laptops, numbered accounts and counter-surveillance techniques to help American clients conceal their identities and evade taxes.

Weil oversaw the bank’s cross-border business that catered to U.S. clients, generating about $200 million a year in revenue for the bank, the Justice Department said in a news release.

The announcement did not name the bank, describing it only as a large Swiss bank with offices worldwide.

A report on UBS’s Web site says an executive name Raoul Weil was head of UBS’s wealth management international business between 2002 and 2007. The indictment says the Raoul Weil charged in the case was head of the unnamed Swiss bank’s wealth management business from 2002 through 2007.

Weil was named chairman and chief executive of UBS’s global wealth management and business banking operations in 2007, the UBS site said.

Other bank executives “at the highest levels of management” are unindicted co-conspirators, according to the indictment.

The action announced today is part of a larger clash between the U.S. government and the tradition of secrecy that has been central to Switzerland’s lucrative banking industry.

Read moreSwiss Banker Charged With Conspiring in Massive Tax Fraud

Europe on the brink of currency crisis meltdown

The crisis in Hungary recalls the heady days of the UK’s expulsion from the ERM.

The financial crisis spreading like wildfire across the former Soviet bloc threatens to set off a second and more dangerous banking crisis in Western Europe, tipping the whole Continent into a fully-fledged economic slump.

Currency pegs are being tested to destruction on the fringes of Europe’s monetary union in a traumatic upheaval that recalls the collapse of the Exchange Rate Mechanism in 1992.

“This is the biggest currency crisis the world has ever seen,” said Neil Mellor, a strategist at Bank of New York Mellon.

Experts fear the mayhem may soon trigger a chain reaction within the eurozone itself. The risk is a surge in capital flight from Austria – the country, as it happens, that set off the global banking collapse of May 1931 when Credit-Anstalt went down – and from a string of Club Med countries that rely on foreign funding to cover huge current account deficits.

The latest data from the Bank for International Settlements shows that Western European banks hold almost all the exposure to the emerging market bubble, now busting with spectacular effect.

They account for three-quarters of the total $4.7 trillion £2.96 trillion) in cross-border bank loans to Eastern Europe, Latin America and emerging Asia extended during the global credit boom – a sum that vastly exceeds the scale of both the US sub-prime and Alt-A debacles.

Read moreEurope on the brink of currency crisis meltdown

Protesters Block UBS Branch, Seek Return of Bonuses

Oct. 23 (Bloomberg) — Protesters blocked UBS AG‘s private banking branch on Zurich’s Paradeplatz as hundreds gathered in the Swiss financial center to seek curbs on executive pay after the country’s largest bank was forced to ask for government aid.

Dozens sat on the steps of the bank’s entrance from midday shouting “return bonuses!” and waving red flags at bystanders and TV cameras. Unia, Switzerland’s largest trade union with more than 200,000 members, said about 1,000 people protested in front of UBS headquarters at an after-work rally.

“UBS shouldn’t be allowed to just continue this way,” said Olivier Vogel, a 24-year-old politics student at the University of Zurich and a member of the Social Democratic Party’s youth organization, which organized the protest. “If the bank won’t come around, there will be more actions.”

UBS’s $59.2 billion government aid package, announced last week, has prompted a popular backlash against executive pay in a country where tax evasion is not a crime and local governments offer tax breaks to lure millionaires. The bank paid about 12.5 billion francs in performance-related compensation for last year.

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Switzerland Bails Out UBS; Credit Suisse Raises Funds


Pedestrians walk past a branch of the UBS bank in Bern, Switzerland, on Thursday, Oct. 2, 2008. Photographer: Adrian Moser/Bloomberg News

Oct. 16 (Bloomberg) — Switzerland gave UBS AG, the European bank with the biggest losses from the credit crisis, a $59.2 billion rescue and pushed Credit Suisse Group AG to raise funds, joining authorities around the world in shoring up banks.

UBS will get 6 billion Swiss francs ($5.2 billion) from the government and put as much as $60 billion of risky assets into a fund backed by the central bank, the Zurich-based company said. Credit Suisse Group AG raised 10 billion francs from investors including Qatar and Tel Aviv-based Koor Industries Ltd.

Switzerland is the last of the world’s financial centers to pour cash into ailing financial institutions after losses on bad debts reached $647 billion globally and credit markets froze. The Swiss government plans to raise deposit guarantees and is ready to back the short- and medium-term interbank loans of the nation’s banks, after countries across Europe took similar measures.

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World’s Largest Gold Refiner Runs Out of Krugerrands

Aug. 28 (Bloomberg) — Rand Refinery Ltd., the world’s largest gold refinery, ran out of South African Krugerrands after an “unusually large” order from a buyer in Switzerland.

The order was for 5,000 ounces and it will take until Sept. 3 for inventories to be replenished, said Johan Botha, a spokesman for Rand Refinery in Germiston, east of Johannesburg. He declined to identify the buyer.

Coins and bars of precious metals are attracting investors as a haven against a sliding dollar and conflict between Russia and its neighbor Georgia. The U.S. Mint suspended sales of one- ounce “American Eagle” gold coins, Johnson Matthey Plc stopped taking orders for 100-ounce silver bars at its Salt Lake City refinery and Heraeus Holding GmbH has a delivery waiting list of as long as two weeks for orders of gold bars in Europe.

“A lot of people are worried about the dollar, they’re worried about inflation and now we have geopolitical risk with what’s happening in Russia,” said Mark O’Byrne, managing director of brokerage Gold and Silver Investments Ltd. in Dublin. O’Byrne said his company’s sales are up fourfold this year, heading for a record since its founding in 2003.

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