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Swiss Banks Too Quick in Giving up American Names

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Swiss banks thought they had a good deal. Give up their client names and avoid prosecution by the U.S. Wow, talk about running for the hills and ditching your clients. But, not so fast say Swiss lawmakers. Lawmakers are telling Swiss banks not to be too quick in giving up Americans with bank accounts. The Wall Street Journal’s John Letzing reports:

Swiss lawmakers dealt a serious blow Tuesday to a plan that could enable the country’s banks to avoid the threat of prosecution in the U.S. by collectively coming clean about their dealings with suspected American tax evaders.

The lower house of Parliament voted 126-67 against even considering the plan, which would allow banks to skirt Switzerland’s banking secrecy law and hand information to U.S. authorities about the undeclared holdings of their American clients, as well as the bank employees who assisted those clients.

The vote sends the measure back to the upper house, which had approved it last week, for further debate and another show of hands as early as Wednesday. A reversal there would mean the legislation’s demise—and could lead to severe legal complications for Swiss banks in U.S. courts. Approval would send it back to the lower house.

The Swiss cabinet introduced the plan last month. Critics called it a violation of Swiss sovereignty.

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E.J. Smith - Your Survival Guy

Preparing your investments and family for when disaster strikes.
E.J. Smith is the Founder of YourSurvivalGuy.com, Managing Director at Richard C. Young & Co., Ltd., a Managing Editor of Richardcyoung.com, and Editor-in-Chief of Youngresearch.com. E.J. graduated from Babson College in Wellesley, Massachusetts, with a B.S. in finance and investments. In 1995, E.J. began his investment career at Fidelity Investments in Boston before joining Richard C. Young & Co., Ltd. in 1998. E.J. has trained at Sig Sauer Academy in Epping, NH, where he completed course-work in Practical and Defensive Handgun, Conceal Carry Pistol, Shotguns, Precision Scope Rifle and Kidnapping Prevention. E.J. plays a Yamaha Recording Custom drum set with Zilldjian cymbals. His first drum set was a 5-piece Slingerland with Zilldjians. He grew-up worshiping Neil Peart (RIP) of the band Rush, and loves the song Tom Sawyer—the name of his family’s boat, a Grady-White Canyon 306. He grew up in Mattapoisett, MA, an idyllic small town on the water near Cape Cod. He spends time in Newport, RI and Bartlett, NH—both as far away from Wall Street as one could mentally get. The Newport office is on a quiet, tree lined street not far from the harbor and the log cabin in Bartlett, NH, the “Live Free or Die” state, sits on the edge of the White Mountain National Forest. He enjoys spending time in Key West and Paris. Please get in touch with E.J. at ejsmith@youngresearch.com. Sign up here to receive all the best content from Richardcyoung.com each week.