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Finance Minister Offers Swiss Banks Tax Evasion Deal

August 15, 2012 Leave a comment
Switzerland’s Finance Minister Eveline Widmer-Schlumpf
– Photo Courtesy of http://www.guardian.co.uk
 

Swiss banks for years have avoided U.S. regulators in regards to helping wealthy Americans commit tax evasion.  But in a world where  banks are under major global  scrutiny and investigation  because of the  Libor manipulation scandal, massive derivative trading losses, money laundering allegations and admissions, and banks participation in the crash of the credit and mortgage markets; U.S. regulators are taking action and banks are now having to answer for their violations.

Swiss banks are sacrificing their employees past and present by giving names to the U.S. authorities in connection alleged employee’s connection with setting up American accounts for tax evasion. Thousands of names are being given to federal regulators according to Douglas Hornung, a Geneva- based lawyer representing 40 current and former employees of HSBC Holdings Plc (HSBA)’s Swiss unit.

“The Federal Council had no right to grant permission for banks to send any information to a foreign authority,” said Marcel Niggli, a professor of law at the University of Fribourg.

“The companies know the risk of penalties in Switzerland is insignificant compared with the business risk in the U.S. It’s a cold-blooded action by the banks.”

The legality of this action is questionable and would violate rules of privacy although the risk of privacy violation consequences  may worth the risk as compared loss of U.S. business for some banks.

“The tax dispute with the U.S. can only be settled without further escalation if the bank cooperates with the U.S. authorities,” said Igor Moser, a spokesman for Zuercher Kantonalbank.

“The respect for the rule of law has declined in a way I simply thought unimaginable a few years ago,” Moser said. “The government treats these business interests of the banks as if they were the business interests of Switzerland because the U.S. market is so enormously important.”

Switzerland’s Finance Minister Eveline Widmer-Schlumpf is attempting to make a deal with the U.S. regulators for the Swiss banks but with elections coming up in November  there is  a limited window of time as as Secretary of State Hillary Clinton and  Secretary of  Treasury Timothy Geithner are both leaving their positions.

“We are prepared to sign a settlement with the U.S. for the Swiss banks today. We feel we have made a constructive proposal to the U.S. but it is up to them to accept it or not,” said Widmer-Schlumpf.

References:

Finance.Yahoo.com
Bloomberg.com
Fedortax.com
IRS.Gov 

GREEK VOTE – Bankers On Alert and Prepared

U.S. Banks have been intensely practicing financial defensive strategies in preparation for another potential financial crisis and have stepped up contingency plans to diffuse a possible major financial fallout because of the Greek Vote and what may happen because of the Vote.

After witnessing Greece waver as they tried to comply with the March bailout terms to keep Greece in the European Union, the banking industry moved forward with their defensive programs in preparation of Greece exiting the EU and taking all measure to prevent major disaster as a result of the exit including setting up Crisis Teams at banks in New York and London.

Legal implications have been a major consideration because of banking contracts including loans, bonds and other bank instruments and agreements. There is possibility that a contract could end up in the wrong currency because of changes to the currencies as a result of the Vote. And as a precaution some banks are attempting to move their contracts to more favorable venues to hopefully have agreements operating in the more valuable and favorable currency should there be currency issues.

Banking preparations included practice dry runs to handle possible scenarios that may occur if Greece exits the European Union or other countries leaving the EU or even the dissolution of the EU. For instance in the case of a new currency, test runs have been made for Bankers to practice working a potential new currency.

Bankers with large exposure in Euro countries tested to be sure large funds could be readily transferred from one country to another without issues and making sure those payment system were working successfully.

Clients have been demanding communication with their bankers European divisions and branches for financial news updates for direction and to decide what to do next.

Like the rest of the world bankers are waiting to see what happens and this time many  are better prepared.

Additional Reading:

What the Hell Is Going on with the Greek Financial Crisis

Wall Street and the Financial Crisis: Anatomy of a Financial Collapse

Attacking Currency Trends: How to Anticipate and Trade Big Moves in the Forex Market (Wiley Trading)

Profiting With Forex: The Most Effective Tools and Techniques for Trading Currencies

Apple iPad MD330LL/A (64GB, Wi-Fi, White) NEWEST MODEL

May 29th – 1.7% Today’s Profits – USD looking strong in Forex Trading

From ForexTradeGains.com
1.7% Profit Today During London Market

ForexTradeGain.con  strategies  resulted in profit due to currency opportunities  driven by a  dramatic panic selling environment because of the surmounting issues within European Union,  talk of China coming into the picture,  Japan  cutting jobs and Spain’s worsening economy and banking problems.

With bearish trending  Asian and European markets, the US Dollar is looking strong  but only because the EU is performing badly.

Technicalities 
There is  good gap on most major currencies that occurred over the weekend. Some of them have already been filled and are good areas to plot S/R. Not to mention it can usually be a ‘strong’ indication that if it gapped up ‘over’ a Resistance then we could look for further buying and vice versa for selling.

We’ve hit some major barriers on most pairs and we have some down trend lines being taken out. Could be a time for  consolidation or further profit taking.

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ForexTradeGains.com
Team@ForexTradeGains.com
Phone: 423-523-9911

Additional Reading:

An Introduction to Forex Trading – A Guide for Beginners

Profiting With Forex: The Most Effective Tools and Techniques for Trading Currencies

The Sensible Guide to Forex: Safer, Smarter Ways to Survive and Prosper from the Start (Wiley Trading)

Attacking Currency Trends: How to Anticipate and Trade Big Moves in the Forex Market (Wiley Trading)

Apple iPad MD330LL/A (64GB, Wi-Fi, White) NEWEST MODEL