by Deb Cupples | Switzerland's "Right Wing" seems to share a primary function with its American cousin: the zealous protection of its country's corporations and wealthiest individuals -- even when those interests clash with the interests of the host nation and other nations of the world.
Last week, Swiss-based bank UBS agreed to pay $780 million to settle criminal and civil cases after U.S. investigators found evidence that UBS had broken multiple U.S. laws while helping thousands of wealthy Americans dodge taxes. (SEC)
UBS also agreed to disclose to U.S. officials some of the names of those high-level American tax dodgers. Secrecy is the key when one is trying to dodge U.S. tax laws, right?
Switzerland's "Right Wing" party is angry over the bank's having to disclose those tax dodgers' names -- likely because future U.S. tax dodgers will be less likely to send their money to UBS.
Reuters reports:
In short, Swiss right-wingers want to make money doing business in the U.S. without being responsible for following U.S. laws. And there'll be hell to pay if they don't get their way.
It's not just UBS. The whole system is flawed. CNN matter-of-factly describes it this way:
"Thousands of wealthy westerners avoid taxes by hiding assets in Switzerland and other offshore centers, and U.S. lawmakers say tax havens deprive Washington of $100 billion a year."
I'd be willing to bet that Washington more than $100 billion, but I've no proof -- precisely because Swiss banks have been so secretive. Here's another snippet from CNN:
"'We tolerated a company culture which did not respect foreign laws,' [UBS chairman Peter] Kurer admitted on television on Thursday.
In other words, Swiss banks have been openly aiding U.S. tax dodgers for so many years that it has become commonplace. Reuters continues:
"Switzerland should also reconsider its policy of representing the United States in countries where it has no diplomatic presence, the parliamentary SVP [i.e., right-wing party] said in a statement.
"The SVP said gold stored by the Swiss National Bank in the United States should be repatriated and Switzerland should ban the sale of U.S. funds in the country to protect Swiss investors after the failure of U.S. regulators....
"U.S. tax authorities said on Thursday they were still pursuing a civil case against UBS seeking access to thousands more names of U.S. citizens it says are hiding about $14.8 billion in assets in secret Swiss bank accounts." (Reuters)
Forget the delicate balance of world diplomacy, forget the world's terrorism woes, forget corporate folks' duty to follow the laws in the countries where they do business.
The UBS folks who allegedly broke our laws while helping UBS make money in the U.S. should be thankful that they aren't in jail -- which is where people with a lot less money end up when they break our nation's laws.
For details on UBS's alleged law breaking, see the SEC's complaint and press release.
The story only gets worse, according to CNN:
"UBS said it will book the settlement charge in its 2008 accounts, which will be published in an audited form in March."
In other words, UBS seems to be planning a book-cooking session.
Of what do I speak? UBS's settlement with the U.S. Government was agreed to in February 2009 -- not in 2008. The $780 million will represent a drain on UBS funds in 2009 or later.
Instead of accurately accounting for that in 2009 or later (which would decrease UBS's assets by $780 million smaller in the future), UBS plans to pretend that the money-drain had already occurred in 2008.
To me (and I'm no expert), that looks like a misleading shifting of losses off the current books and into the past.
Note that UBS -- like many big American banks -- suffered billions in losses because its executives recklessly (or corruptly) invested heavily in mortgage-backed securities. As a result, UBS accepted a bailout from the Swiss government.
Memeorandum has commentary.
Other Buck Naked Politics Posts:
* Record Job Losses, Yet Republicans Want Tax Cuts for Wealthy?
* Real Bonuses Based on Fake Profits
* Richest Got Richer Under Bush and Paid Lower Tax Rates
* A Different Angle on the Tax-Cuts Myth
* Save Jobs by Cutting Executive Pay
* Cleaning up Political & Corporate Culture Could Help Economy
Swiss "Right Wing" as Corrupt as American "Right Wing"? Probably more so. The Swiss are, like John Kerry, nuancing Europeans, nest-ce pas? But your answer, Deb, may also depend on exactly whom you consider to be the American "Right Wing".
Treasury Secretary Geithner, tax cheat, Right Winger? Lobbyist former Senate Majority Leader and tax-cheat HHS Secretary appointee Daschle, Right wing? Intern grope-and-poke perjurer President Clinton, and unindicted co-perjurer Hillary Clinton, already-undercut Secretary of State, Rightists? Accidentally-admitted perjurer and appointed Senator (for now) Burris, conservative? Tape-recorded perjurer and Senate-seat-seller Blagojevich, neocon?
Posted by: flowerplough | February 25, 2009 at 12:44 AM