Are Swiss banks in trouble?
Вставка
- Опубліковано 15 тра 2024
- A global clampdown on tax evasion, led by U.S. law authorities, has transformed the banking industry in Switzerland. Without its famed reputation for secrecy, wealthy foreigners no longer see it as a haven to hide their money. So how have Swiss banks adapted? CNBC’s Tom Chitty is joined by Geoff Cutmore to explain.
Contents of this video:
0:00 - Intro
1:11 - How Swiss banking has changed
1:37 - Swiss bank secrecy and success
3:20 - Swiss banking's downfall
3:55 - Repercussions
4:41 - The impact
5:01 - New markets
6:24 - Have things really changed?
8:37 - Is this the end of Swiss banking?
-----
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This video aged like wine!
im really happy money laundering bank is now collapse
One of the saddest things in this video is that the gentleman who was a whistleblower on Swiss banks had to serve time in a u.s. jail simply because he made an error in his testimony. His whistl blowing garnered BILLIONS for the u.s. government. Talk about biting the hand that feeds you.
Birkenfeld received 102 million dollars for his services to the Department of Justice and the IRS. He made a lot of money with helping the US taxman collecting untaxed assets.
And that's why you don't ruin good things
Whistle blowers never win. My dad was a director of engineering and whistle blowers on directors who brought land and sold it back to the company at inflated prices. He told the company that owned that company. Board for Rid of him. He ended up retiring. Only two years later did the main company so him to testify against the directors in court. He never got his job back
Witness protection program?
@@SwissBankingLawyersZurich what is your thought on birkenfeld ? I mean in the big picture of "untaxed offshore money" his actions does not seem to fix the problem.
What irony that US is ranked number 2 in the Financial Secrecy Index ahead of Switzerland who is number 3
Where do you think the CIA and other agencies make their money via shell corporations for all the naughty things they do worldwide?
Then who is number 1
@@mohammadsavad4331 u didnt even watch video lol
@@justsomevids4541 yeah😁
@@mohammadsavad4331 05:43
That is a tiny fraction of the story, I like how US governments and financial institutions point fingers while they have a shitload of dirt on their own!
The ignorance of your comment is astonishing.
@@majedtaleb3944 is he wrong though? Wasn't the US higher up on the secrecy chart?
@@floddarelti206 the American government has access to accounts of US citizens to stop tax evasion
@@majedtaleb3944 how do they do tax evasion then?
@@floddarelti206 by having money transferred to overseas banks in countries that don’t disclose their clients information such as Swiss banks.
Most global tax evasion is now occurring in Deleware and Nevada who apparently don't have the same reporting requirements as Swiss banks
Of course not. This is so foreign companies can evade the taxes in their home countries and store the funds in the US. The US has taken over Switzerland's previous role, while ensuring that Switzerland remains perceived as the banking villain via hollywoods continued use of Switzerland in it's movies, as soon as someone wants to hide money. You will NEVER see a Hollywood movie using Nevada, Delaware or any othe US territory as the banking reference for hiding funds.
@@christheswiss390 yeah i heard in one City you can just open up a Business and bank Account without having to do much. And nearly have no taxes
it happen in some part in canada.
@@zooleebest in which one? Maybe i will go there
The reason why the usa is so harsh on tax evasion is bc its the biggest tax heaven if you know what you are doing.
Switzerland’s standing as a financial center is shattered. “The country will now be viewed as a financial banana republic"
Now we created a new giga bank while rescuing credit suisse. The total assets of this new bank will be somewhere around 3 times the GDP of Switzerland. European Union and the US better be prepared to help rescuing this monster next time, I seriously doubt we will be able to do it ourselves.
Nice video!❤️
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As a software engineer working for the financial industry in Zürich it doesn't look like this sector is in much trouble. It still pays the highest salaries here and invests a lot in modernization and digitalization.
can i send you my C.V men, i’ve been retrenched due to pandemic
Didn’t age too well
@@tiger_would4419 why not
Well let's talk about it again now
@@TWCHHKhaha timely reply! Ofc Credit Suisse is in the dumpster now but still the Swiss finance industry as a whole is very dynamic. That is what I meant in my initial comment
"Swiss bankers are going to work a whole lot harder to justify holding your cash!" Yes, they will do that to survive!!!
Awww poor bankers…
Said no one ever
Jean- "From a financial standpoint, you are now in heaven."
Jordan- "Did you just say what I thought you said? Yes, yes!"
5:45 Financial secrecy index: US world's second. They fine Swiss banks for secrecy in the bank sector but they're in second place in the same index?
So it's not about secrecy, problem is "others" secrecy. They just want to take out competition, as USA is a safe haven itself.
And why are you angry?
@@majedtaleb3944 as already seen in history, US does not apply the rules they want to impose to others.
They're not better than others as they want us to believe.
@@roberton9029 this is what superpowers do 😂
Well, US foreign policy is naturally talented on judge and criticize other countries on things they also do 😉
@@majedtaleb3944 Ah yes, good old 'might makes right'...
after that US act to force the Swiss to reveal the clients' information, the banks stoped opening accounts for Americans. The US does ride its citizens, even abroad.
No need to hide your money if it is legally made
@@kcegr no need to tax it away from people, if it is legally made
@@xealit LOL... *Don't need to Provide Infrastructure For People If Its Legally Made* ... *People should Build their Own Roads and ETC* ... You, Dickhead is Basically Questioning the Purpose of Taxation..
@@xealit Money is legally only made when taxes are paid for it according to the rule of law.
@@DhrubajyotiRaja01 the talk here is not about in America, it is about taxing even in abroad, no one questioning the taxing policy in america
Here in northern Italy, a huge chunk of wealthy families used to put their money in Switzerland. Some to dodge taxes, some for how solid Swiss banks were and some because of the non-existent capital gains taxes, thus making it very convenient to invest through a Swiss bank account. 10 Years ago, Switzerland was pressured into abolishing bank secrecy with Italy, forcing the banks to disclose the identity of Italian nationals with accounts over there. The golden days of Europeans stashing their cash in Swiss banks are pretty much over.
Nowadays everybody's pulled out of Switzerland, and headed to other safe heavens like Luxemburg of Lichtenstein.
Monero crypto and other crypto is the future I believe for those unscrupulous individuals
@@annajones9701 Regarding the "and other crypto" part of your comment. Unfortunately, most cryptocurrency payment processors require KYC. This means that as soon as you make a purchase the wallet will be tied to you. Monero is the only option if you want the kind of privacy Swiss bank accounts used to offer. Public ledger coins just don't cut it.
This aged well.
Yup
tax heaven have karma coming
I hate big banks
UBS and CS have to solve their problems with the very last scandals of the last few months. Finished? Never. This is just the beginning. The world will become more insecure and the business will be booming. New investors from Hong Kong have discovered Swiss banks as an alternative to Singapore despite the longer distances. The Swiss banking sector is not in decline. It's a booming business.
"One man's stash is many other's come up." - Swiss Banks Story
As far as regulations go, they came much later as a face saver. Many new tax havens and more innovative options had already hit the business by then.
As he said: Suisse banks are still a safe haven. Meaning nothing has changed.
Hello
Very true!! Its still same as it was only middle class are made fools !!
There is a difference between Safe Haven and Tax Haven. From what I understand from the video, Switzerland is no longer the Tax Haven that it used to be.
Trails: nothing has changed for everyone else except for American citizens.
The corrupt politicians can still park their money there, authorities don't care for taxes of the public servants.
That transition where he pulled down the screen wipe... AMAZING
Maybe, the Swiss bank/s gold reserves are being transferred elsewhere...
fantastic report, thanks!
This video was made a year BEFORE the the current crises that is happening as of,October 8,2022..the stock of Credit Suisse is Down about 60 percent and there is talk about a pending bankruptcy......
I-- have been waiting for this!! Thank you
under the polished veneer, there is dirt and incompetence
Oh, yeah.
A bank like the Credit Suisse not recognising 4 scams in a row within few months is the ultimate demonstation of incompetence
@@nazarenoorefice2104 Or is it?....
@@kensmechanicalaffair could be
40 seconds into the video, making a prediction, Swiss banking is slightly declining because the financial systems in the regions like asia are gaining more reliability reducing the need for foreign businesses to use an international bank, but mostly the swiss banks are merging or simply eclipsing each other as larger banks are able to provide better prices and service knocking out smaller players
Really? 🤔
Who’s watching this after credit suisse bank collapse?
The government's tax structure was more fairer nobody would hide their money people would pay the fair share of tax.
Not really. Greed and the ability to evade taxes is what causes the rich to do so. Not a sense of unfairness. If taxes were low at 10% but they could move their wealth to some offshore country to pay only 4% they would still do it.
Only rich people and criminals hide their money on tax heavens.
Who decides what is fair?
@@DarkDonnieMarco should be the pepole.
What you mean golden standard? Literally were used mainly because it’s high standard for customers protection. They are only responsible to comply with EU directives on not using confidentiality to reject cooperation for anything
A year later wow
well made and informative.
The CEO of CS didn't have this video I guess.
Today it's not about return ON capital. Today it is about return OF capital.
Now THAT, was a brilliant comment. HAHAHAHA!
As private banking hubs, there are no credible alternatives in terms of secure jurisdictions. More than ever, Switzerland offers asset protection because it's court proven asset protection.
Well researched and good journalism!
This aged like the finest of wines.
There should be even more privacy and secrecy not less
So Americans cant escape Uncle Sam from anywhere on planet earth. The taxman will find you...
If IRS can get Capone, I am sure they can get the average American trying to commit tax fraud
Thats why so many renounce their US citizenship. You can still escape Uncle sam tax. And since when US has authority over other countries businesses and citizens. However, the world need to have a wake up call. US is bend on having total control of everyones lives and finances. Better ditch the dollar now and diversify.
@@PatriciaFreddy i plan on renouncing my usa citizenship after my wealth reaches a certain amount to escape Uncle Sam, around 1 and a half years to go. I dont like where US is heading with taxes and in some years or decades they will lose status as reserved currency. Diversifying into crypto, currencies, and other assets is the move
Land of the free eh. Prisoners for life no matter if they live somewhere else lmao.
@@whackyscripts6045 I heard US has big govermental debt too. May be it also will have its impact
Stable government, safe haven status, neutrality... While these attributes aren't easy to achieve, they aren't unique either. As long as these Banks continue in their current path of neglecting operational risk, they will continue to lost their talents and their clients in the end.
I learnt some years ago the Swiss were changing their economic focus from core banking operations to international digital data security for governments as well as corporations?
It was tax evasion plane and simple. Just like offshore banking.
Greed of some people is beyond belief! Money stashed away is really no good to them! They won’t be able to take a single cent with them when they die
It's not some people though is it. It's whole families, companies, organisations. You're thinking small with the individual.
True. But if one can, nothing wrong or greedy about having some rainy day savings. Never know when you might need it? Im not talking about hoarding money. That kind of thing is often due to greed.
We are talking about riches these guys will never be able to spend even in rainy days. And if you notice, inherited wealth lasts only 3 generations!
Re Foreign Account Compliance Act: There is a flipside to this law. It makes it so much harder for a US citizen, like an ex-pat, to open a foreign bank account.
Banks outside the US just as soon not deal with the hassle of inviting US government scrutiny by having Americans as customers.. Keep in mind also that the US is the only major country on earth that taxes the income of its citizens living and working abroad.
I prefer to say that the majority of banking services are lousy no matter which bank you choose. For the average consumer, it's been well past a decade where clients are receiving negative interest rates for holding their assets in institutions that can't invest your assets just to break even.
That's not true. When was Glass Steagall put back into law? A girl can dream ey?
Cayman & Virgin Islands still the go-to places when it comes to hiding your offshore assets.
Georgia
Let’s not forget..the explosion of fintech over the last few years has been gaining a lot of traction and clearly a future heavy-hitterz
Monero for the win
Good clip thanks
Interesting video. As a realtor in Houston, this is really helpful to compare.
I have a question for you. Until when do you think the house prices are going to continue to rise in Houston. It seems everything is so expensive now. 😭
Highly interesting intro. Liked it!
Hello
Maybe Cayman Islands has more money now. 😁
I'm in love with your videos.
After watching videos on Switzerland, I also feel rich!!!
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Switzerland is probably the wealthiest country. I grew up in Interlaken & Gstaad if not also most influential.
Ahhh, Gstaad. I can hear the ompah of the tubas in the background. Blessings.
Monaco would beg to differ
@@lolaland5595 Isn't that where they host a Grand Prix every year?
@@lolaland5595 Love Monaco. But you don’t settle international disputes there. Or have a secret mountain bank safes lol.
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Nice one👍
I’ve always thought that the Panama Papers and resulting EU legislation clamping down on offshore tax havens was the real impetus for Brexit.
The only reason why they are struggling is because they used to have a secrecy agreement and never give information about their clients!!
Nowadays as soon as a country asks they immediately give information so they are useless nowadays!!!
That's why in end we shall use the Pablo Escobar approach of putting money in plastic bags and bury it in the ground 😂😂
Can anyone answer; how much global cash (backed by gold) is in circulation vs current global debt? Then, how much is 'circulating' that is not cash or gold, but being accounted for as either or.
This is literally robbery
whatcha gonna do about it?
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Actually Ghana stopped exports of Coco to Swiss , so far as Choclate goes those are old stockpiles , now its made in china . I kid you not .Look it up
Even the name has changed. It's no longer chocolate, it's chongolang.
@@scottbaxter2682 Good one :) Can i share something with , i am actually Grateful to Chinese ppl , they suffer a lot to make us those products . They messed up their Land so much , polluted the Air that they must ware FaceMasks regardless of virus , they were waring it long before pandemic . Its exactly why it started there if you have brain to work it out , they wanted to be sure it will spread around the world , face mask thing . Knowing Chinese are already doing it made it easier .
Chinese ppl are not stupid ,they were aware of it , but you know , they beat them up , lock the up until they accept the lockdowns and all .
And then when they succeeded it went global , but not before .
Has nothing to do with chocolate or chongolang but , felt like sharing it . :)
I don't understand the examples for recent scandals (Credit Suisse hiring a PI to spy on one of its former executives that went to work for UBS) and Greensill (which was the failure of the British regulator) and Archegos (which involved almost all Major banks in Europe and the US). They have nothing to do with banking secrecy and only one has actually to do with commercial banking.
Switzerland made a lot of money with tax dodgers and although the US started it most of them were actually German. The tax dodgers were responsible for up to 70% of Swiss banking profits although they only held 20% of accounts. So ultimately the tightening of EU regulators squeezed a lot of the easy profits out.
1934: Swiss passed banking secrecy act
Yep, just in time for the Nazis to deposit their stolen loot.
@@SnoopyDoofie
Absolutely you are right from Germany .
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Credit Suisse is one of the most underperforming bank there is
Not so. They have been working very hard with Greensil and others.
Very interesting
Wait a minute .. The US has secrecy laws making it a foreign accounts haven ? But .. They require other foreign banks to tell on their clients ? Very confused
The US are kicking Switzerland out of business with unfair competition
Democrats are doing this
You guys forgot about negative interest rates
yep! Geoff Cutmore says it at 10:20
;0)....yeah ! Negative Interests ! Who would have thought !
Great interview; I am 49 and I always here about people having Swiss bank account !!?
Sure u can open one (if u not US) costs are approx ChF 300.00 a month & best rate under 10million is 0.075
You will be paying the bank to hold your money.
@@dd2826 What if my uncle has 50 000 euro and wants to put it in swis bank
Doe she need to pay them 300 cfh monthly or yearly or how much do you think and when
As the Nomad Capitalist says “You should go where you're treated best.” Swiss banks are not.
Naaah, those billionaires will have the law makers in their pockets soon enough
soon? ... they have always been in their pockets
As with society and its love of money to consume....consumerism
They PUT those lawmakers there. Selected, not Elected.
I feel that taxes should be optional for all in the world. If I don't trust a politician with my money, then why should I pay the taxes? Why am I not allowed to park my money whenever I want? Before we force people to pay the taxes, we should first force the politicians and governments, to make every spending public. They are still earning a lot more than any successful businessman or a qualified salaried person.
They have competition from the Bahamas, Cayman Islands, the British Virgin island etc.
I still think that Swiss Banks are still King, even though they are facing challenges at the moment
They will weather the storms with ease, no doubts. They are not in The EU . They don't have to ask anyone if they want the restructuring their banking system etc .
this did not aged well
At least Swiss banks have experience storing real value, not generating electronic money via sketchy central bank machinations.
What? Switzerland has a central bank too. The Swiss Franc is a normal fiat currency.
Cayman Islands... need to look at the city of London full of off shore accounts
Well there is a saying "Ill earned money will never be enough and will always makes you suffer".
You ever wonder how these Scandinavian countries enjoys great luxurious lifestyle without really producing anything of note to the world? They help CEOs and big Corporate avoid taxes by stockpile their money in their banks.
Norway? A trillion dollars amongst 5 Mill lol. They got it made
Norway produces oil, alot of it. Sweden has very strong companies and so does Denmark.
Scandinavian? You are in the wrong part of Europe.
Scandinavian countries have pretty high taxes. Not the best countries to stockpile money.
What may be important to you: Switzerland is NOT Sweden!
Isn’t Norway just a country of fish,oil and introverts?
Nice video.
5:35 isnt Chicago?
Nieuczciwość nigdy się nie opłaca .
Akcja = Reakcja .
Always .
Kłaniają się proste prawa fizyki .
In the end you always get what you give - this is a universal law .
Crypto bots working hard here
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this video aged well
Those Lindt Lindor chocs are made in Italy, well those I get are made there.
Bitcoin: new technology store of value
You mean an anonymous way to buy illegal items online via DNM?
Money laudering.
@@jeeess9979 most of drug dealers and terrorists use USD for their operations
Behind every great fortune, there is a crime.
-- Balzac
Good old days
Well it's normal for each side to hide the earnings in other countries and vice versa hold some in their own
Switzerland and the UK Should start their own free trade area. It should include all non-aligned states. Free independent trading countries working together .. not imposing laws on each other...
1:57 how do you go that far to tax someone
If you're rich and you want to keep your money away from prying eyes, you don't put them in a bank. Instead you put them in trusts, a legal gray zone where one simultaneously owns and doesn't own said assets. This is why the 'smart' and 'big' money go to to the Cayman Islands, Bermuda, Jersey and also how the City of London (and by extension the UK) keep their relevance in the world.
This type of bank block flow of money? It indirectly preserve rich people power but adversely affect on comman people life?
*I love Fererro Rocher*
me too
Swiss banks are falling 1 year from this interview
Good inside .
Nobody "hides" money in a bank. Transfering money from shaddow activities (bribery, criminal acts, tax evasion, etc) into de official financial system (the market) is acomplex process that envolves a whole network of financial institutes in different countries in combination with intermediary economic activities such as real estate, construction, art, food business, and research, among others. But well, go on and believe. I'm fine with this video, it keeps the ruble going on... ;-)
They moved to Singapore. It’s simple
It's the Swiss buddy , nothing stops them at banking
Tell that to the 100 banks that were gone
What this misses is the fact that the swiss did not easen up the restrictions taken after the 2008 crysis. Both, CS and UBS have much higher equity rates than their US counterparts. This means, they have much lower earningspotential in "good years". And we have those since 2008 basically.
However, if a next real crash approaches, the swiss banks will be able to absorb the hit. While US banks for example will instantly get into deep troubles.
And with all the effects in a crisis, if you are able to act countercyclic you are able to make really big buck. Plus, all the investors "flee" to safe banks.
In summary: Swiss banks have a much more risk averse strategy, this pays out at the next crisis. Until then, swiss banks will keep looking "weak".