US tax deal could prove deadly for small banks … US demands are “barely tolerable both economically and legally”, according to Swiss Bankers Association chairman Patrick Odier … Valiant, Berner Kantonalbank and Vontobel are the first Swiss banks to have agreed to sign up to a United States tax declaration programme. Experts warn the associated legal costs of complying with the treaty could “kill” some of the smaller banks. Big banks, which sparked the US crackdown by knowingly or recklessly harbouring untaxed assets, have the financial clout to absorb costs and fines. But regional institutions, making up one in four of all Swiss banks, may face a harsher ultimate penalty, despite shouldering a far lesser burden of guilt than larger rivals. – SwissInfo.ch
Dominant Social Theme: The US government is only being reasonable. It will prosecute Swiss banks to the full extent of the law in order to make sure that tax revenues and resultant benefits to US citizens are maintained.
Free-Market Analysis: One thing is for certain: This amped-up regulatory regime is not about taxes. It’s about control … not just of Swiss banking facilities but ultimately of banks around the world, large and small. In fact, the top elites already run central banks around the world, so this merely adds another layer of control. And when it comes to running banks, the place where banks supposedly had the most freedom was Switzerland, so that region was attacked first – just to provide an object lesson.
Read more via The Daily Bell – Real Reason for the US’s Global Tax Levy.
- Real Reason for the USs Global Tax Levy (thedailybell.com)
- Swiss Banks to Join Disclosure Program (online.wsj.com)