Posted on 09/17/2012 6:24:50 AM PDT by blam
Hundreds Of Billions Of Dollars Expected To Be Withdrawn From Swiss Banks Amid Tax Evasion Crackdown
Emma Thomasson, Reuters
Sep. 17, 2012, 4:46 AM
ZURICH, Sept 17 (Reuters) - UBS expects Swiss banks to see European clients withdraw "hundreds of billions of francs" as a result of steps to stop foreigners using secret accounts to evade taxes.
Juerg Zeltner, head of UBS wealth management, reiterated an estimate he gave in May that Switzerland's biggest bank could see outflows of 12-30 billion Swiss francs ($12.8-31.9 billion) from total European assets under management of over 300 billion.
"As a consequence of the realignment of the financial centre and the planned withholding tax, we assume that a total of hundreds of billions of francs will flow out of Switzerland," he told the Schweizer Bank magazine in an interview on Monday.
"In the offshore business with European customers, I assume that we will have to live with significant outflows of wealth for quite a long time yet."
German financial services consultancy Zeb/Rolfes Schierenbeck Associates estimates Swiss banks could see European clients pull up to 200 billion francs by 2016 of the 789 billion it believes they currently hold in untaxed assets.
Zeltner's comments come just days after Credit Suisse , Switzerland's second biggest bank, said it expected clients in western Europe to withdraw up to $37 billion in the next few years due to pressure on the tax issue.
Putting the potential outflows in context, Zeltner said UBS had seen about 200 billion francs of withdrawals during the financial crisis, when the bank had to be rescued by a government bailout after huge subprime losses. Client assets fell almost double that amount due to market and currency moves.
Swiss bank secrecy - which has helped the country build a $2 trillion
(snip)
(Excerpt) Read more at businessinsider.com ...
Even if the US government comnfiscated ALL OF IT it would not cover one year’s worth of Odumbass’s spending spree
Wonder how much of it belongs to now and former elected?
Hillary’s account? na..I think Chelsea is managing their cash
All I want to know is how much Soros, TurboTax Timmy, Pelosi, and a multitude of ObamaIdiot worshipping-mites will be pulling out.... =.=
So where is this hot money going to? Singapore, Panama, Isle of Jersey, Cayman Islands? What’s the in place for hot money these days?
I’ve instructed my money manager to withdraw my billions from Swiss banks, and put the money into taco stands along the border.
Increased sales of mason jars to ensue.
Yes, second that, as inquiring minds want to know.
Ironically, the "hot money" is really mostly "hot data bits." Kind of strange, isn't it? The new vault is a redundant disk array.
I wish I owned a bank in the Caymans.
Just you wait..the Caymans will sink into the Caribbean from the combined weight of all that new money/precious metals landing there
You have to wonder what insane level of coercion the US used on Switzerland to convince them to economically ruin themselves?
Without secret banking and intense neutrality, Switzerland is reduced to being as unimportant as Lichtenstein. They can now look forward to their standard of living dropping like a rock, with everything they love going to pot.
They were long able to preserve their national identity and culture precisely because they refused to be homogenized into the rest of post-WWII Europe, under the direction of socialist democrats who hate nations and ethnic groups and cultural identity and crave bland gray mediocrity in all things.
What they have done makes as much sense as Texas applying to become another state of Mexico.
Maybe not. I have a friend who spend a lot of time diving there. Five years ago, maybe a bit more, he told me that the Caymans had caved to US pressure and substantially weakened their bank secrecy laws. I have not independently verified that myself; just passing it on.
Not to worry, some thoroughly dangerous third-world thug will be happy to shelter it for them.
They told UBS, Credit Suisse, etc. that they would lose their ability to do business in the US.
That's the most important question here. I'm sure if you knew, they'd have to kill ya...
They won't catch too many fatcats without wistleblowers giving up data. Everyone important saw this coming and moved a long time ago. I'm sure whoever controlled the data in the hot banks got convinced to alter and wipe their hard drives.
That's the most important question here. I'm sure if you knew, they'd have to kill ya...
They won't catch too many fatcats without wistleblowers giving up data. Everyone important saw this coming and moved a long time ago. I'm sure whoever controlled the data in the hot banks got convinced to alter and wipe their hard drives.
All I know is 20 years after Noriega, Panama is a large banking center. My guess for Latin American money that is sent offshore. You live in Argentina you bank some money in Panama... if you can get it out of Argentina
It seems to me that the best international bank would be a “handshake bank”. Here’s how it works.
There are two different companies (’A’ and ‘B’) in two different countries, who deal with each other for normal business purposes. Say they do $10b business with each other, each year, for which each of them makes $1b in profits. And they pay the tax on those profits in their respective countries.
If somebody with $100m wants that money transferred to the second country from the first, he makes a deal for a different part of company ‘A’ to take his $100m, in a ‘bad’ investment, so officially he takes a $100m loss and they are $100m richer.
After taking their cut, they give company ‘B’ a discount worth the rest of that $100m in a future business deal, and discreetly, company ‘B’ holds on to that money which can be redeemed at any time in the second country by the rich guy.
In effect, company ‘B’ is the rich guy’s “handshake banker”.
To start with, the rich guy takes a big deduction for his “loss” on his taxes, and any time he can travel to the second country to pick up his money there, without country A’s tax authorities knowing about it.
Company ‘A’ makes a profit, and company ‘B’ saves money. A win-win-win for everyone but the tax man.
That country stands out because of the character of its people,I don’t see them voting to revoke their neutrality.The Banks in Switzerland will continue to find ways to receive foreign deposits so likewise this country will find a way to survive.
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