Banking Secrecy Is Here to Stay: Buy Swiss Banks

    The world will soon be facing a tsunami of defaults on bad debts. This will include municipal or local government defaults such as the one now occurring in Stockton California, governments “defaulting” on promises they’ve made to the people (Social Security, Medicaid), a default on the social contract between society and politicians such as the one in Cyprus (a default on the notions of private property and Democracy), stealth defaults on debts in the form of inflation and finally, of course, outright sovereign defaults.

ZURICH (Reuters) - The Swiss government agreed on Wednesday to create a legal basis that will allow its banks to settle investigations by U.S. authorities into their role in helping wealthy Americans evade billions of dollars in tax.

Switzerland’s second largest bank, Credit Suisse, has been accused of helping U.S. customers evade billions of dollars in taxes. A Senate report released on Tuesday details how Swiss banks, including Credit Suisse, allegedly used cloak-and-dagger practices to aid and abet tax evasion by their U.S. customers. The report follows a two-year investigation by the U.S. Senate Permanent Subcommittee on Investigations. According to the report, more than 22,000 U.S. customers held accounts with the Swiss bank, with assets totaling $13.5 billion (12 billion Swiss Francs) at their peak.

Switzerland’s second largest bank, Credit Suisse, has been accused of helping U.S. customers evade billions of dollars in taxes. A Senate report released on Tuesday details how Swiss banks, including Credit Suisse, allegedly used cloak-and-dagger practices to aid and abet tax evasion by their U.S. customers. The report follows a two-year investigation by the U.S. Senate Permanent Subcommittee on Investigations. According to the report, more than 22,000 U.S. customers held accounts with the Swiss bank, with assets totaling $13.5 billion (12 billion Swiss Francs) at their peak.

By Katharina Bart

Complete the following SAT logic question: Cyprus : Russian depositors :: Switzerland : [X] If you answered X = US depositors (for now... soon many more), you are correct.

Markos Kaminis (Wall St. Greek) submits: Your favorite secret Swiss banker is turning you in, and if you have ignored the IRS' kind offer to disclose your account information ahead of time, you might find yourself in prison soon.

For some years now, Swiss Banks have not been willing to take on U.S. clients because of the aggressive tactics of the U.S. IRS. Since they hauled UBS over the coals for harboring U.S. tax evaders and continue to investigate many Swiss Banks, the IRS has posed a threat to Swiss companies operating in the United States. No matter where they live in the world, fear of being involved with a U.S. tax evader has put the wind up Swiss companies, and understandably so.