- John Kerry: Israel-Palestinian peace deal paved for April
- India diplomat who touts women’s rights busted for $3 wage to nanny
- MSNBC host Ed Schultz paid $252K by unions in 2012-2013
- Korean War memorial ordered to take down Christian cross
- Billy Graham near death, ‘close to going home to be with the Lord’
- SeaTac, Wash.: City’s new $15 minimum wage heads to court
- Obama mulls support for Islamists in Syria, with conditions
- Obama ‘birther’ theories float, as Hawaii health director killed in crash
- U.S. drone faulted for killing 14 ‘innocent civilians’ at Yemen wedding
- GOP hopes taking shutdown off the table with budget deal will pay dividends
Global crisis squeezes Swiss banks
As regulations tighten, austerity measures are adopted to survive
“They’re very dangerous for the Swiss government, because they’re so big,” said Jacob Funk Kirkegaard, research fellow at the Peterson Institute for International Economics. “If their banks go broke, the government goes broke, as well. So they have to hold much higher captial than banks elsewhere, and that makes it difficult for them to compete in investment banking.”
But UBS and Credit Suisse being the only major Swiss players in investment banking doesn’t mean the smaller banks won’t face their own problems. At the same time, Swiss banks are also losing their reputation for banking secrecy, as governments pressure them to release the names of their customers.
“They’ve lost the ability to hide money,” Ms. Rehman said. “They’ve lost the ability for secrecy and descretion.”
In fact, the problem is so bad, they turn many potential customers away. “For American customers, Swiss banks pretty much tell you, ‘Listen, don’t come to us unless you have a lot of money,’” she said. “They won’t take you. You’re too much work for them.”
Changes are coming to the industry, and Swiss banks seem to be leading the way.
“They are probably only the first of many banks that are going to go through and decide how to restructure their businesses in the coming years,” said David John, senior research fellow at the Heritage Foundation.
© Copyright 2013 The Washington Times, LLC. Click here for reprint permission.
About the Author
Tim Devaney is a national reporter who covers business and international trade for The Washington Times. Previously, he worked for the Detroit News, Grand Rapids Press, Portland Press Herald and Bangor Daily News. Tim can be reached at email@example.com.
- Dysfunction, disarray at Homeland Security management cited in IG's report
- GM's Barra to be first woman to run top American carmaker
- Treasury sells last shares in 'Government Motors'
- U.S. businesses reach out quickly to partners in Iran
- General Motors ending Chevrolet sales in Europe to focus on Opel and Vauxhall
Latest Blog Entries
By Mangosuthu Buthelezi
Memories of a long brotherhood tempered in common struggle
- U.S. Navy-China showdown: Chinese try to halt U.S. cruiser in international waters
- House budget bargain faces Senate filibuster; Republicans line up to oppose
- Obama birther theories float, as Hawaii health director killed in crash
- Obama's Afghanistan experts stumped on U.S. death toll, war costs during hearing
- NAPOLITANO: A conspiracy so vast
- North Korea's official report on Jang Song Thaek
- Billy Graham near death, close to going home to be with the Lord
- PRUDEN: The last living witnesses; they wore the yellow star and remember the Nazi terror
- James Bond: The spy who is really an alcoholic
- Kim Jong-un consolidating power or losing grip on North Korea's military
Independent voices from the The Washington Times Communities
Implement these actionable tips, how-to’s and best practices in 10 minutes or less to leverage online communications and technology for brand, business and career development.
Consummate traveler Todd DeFeo explores the unique stories that make destinations worth going to.
Covering the world of soccer, including the World Cup, Major League Soccer, D.C. United and the English Premier League and other interesting sporting events.
Born in 1930 in rural Missouri, Charles Vandegriffe, Sr., brings his time and place to the Communities.
Extraordinary day at Redskins Park
White House pets gone wild!
Let it snow