How CS Mishandled New Nazi Account Allegations

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Recently, another issue has emerged: the US Department of Justice (DOJ) is reportedly demanding a substantial fine from UBS, claiming Credit Suisse failed to fully comply with the terms of its 2014 guilty plea regarding tax evasion.

I warned Swiss banks back in 1999 and again in 2005 not to assist with tax evasion in the US Despite this, they engaged in such activities, resulting in multi-billion-dollar fines starting in 2008. It appears that irresponsible and greedy individuals at Credit Suisse—there’s no other way to describe them—thought they could resume aiding Americans in evading taxes. If this proves true, the fine is justified, and UBS, as Credit Suisse’s legal successor, must bear the cost.

Some experts argue that the violations are minor in scope and significance, possibly mere negligence.

If you’ve been caught once as a criminal—like Credit Suisse was—you should be particularly cautious. Every Swiss bank had ample warning about US tax authorities. My patience has run out. If Swiss bankers had shown insight earlier, the entire tax dispute with the US and European countries could have been nipped in the bud. But as always, the bankers thought they knew better. UBS, at least, reached a relatively favorable settlement in 2008. Credit Suisse hesitated, which made it more expensive in the end.

There’s growing concern that UBS—and by extension, the Swiss financial sector—may become a systematic target of US policy.

Since 1993, I’ve closely followed developments in Switzerland’s financial sector. The mistakes leading to its steady decline were entirely self-inflicted by Swiss bankers. Of course, other financial hubs have exploited Switzerland’s blunders. In a liberal economic system, you can’t blame competitors for seizing opportunities when weaknesses arise. However, I don’t believe there’s a structured game plan against Switzerland. It’s purely Swiss self-sabotage.

Thomas Borer is the former Swiss ambassador to Germany and the former head of the «Switzerland – Second World War» Task Force. For over 18 years, he has been a corporate consultant. His firm, Dr. Borer Consulting, manages national and international mandates in public affairs, business development, and private equity. His new book on the «Switzerland – Second World War» Task Force will be published in the coming months.