Swiss banks are feeling the pressure of US crackdown, says Eversheds

Ben Jones, an international tax expert at Eversheds, has commented on the announcement from private Swiss bank Frey & Co that it will close due to costs arising from the country’s dispute with the US over alleged tax evasion.

Jones said: ‘As one of the banks excluded from the agreement struck between the US and Swiss governments at the end of August, Frey & Co would have been facing the continued threat of prosecution and potentially significant fines. It was this very same scenario that brought about the downfall of one of Switzerland’s oldest banks, Wegelin & Co, last year.

‘Had Frey been able to weather the fines it may have had to pay to the US, the broader impact of the US-Swiss agreement is likely to be a more limited private banking market with greater administrative costs and burdens.’

He added: ‘Frey has recognised this now but it seems likely that this will only be the first of a number of further closures or consolidations arising from the continued US crackdown on the Swiss banking system.’

  • Print

Briefings from Eversheds

  • Market abuse regime

    The current EU market abuse regime is in line for an overhaul. It is anticipated that the implementation of the new proposals may not come into force until 2016.

  • Unfair relationships — what does the future hold?

    The ‘unfair relationship’ concept in respect of credit agreements was introduced into the Consumer Credit Act 1974 on 6 April 2007.

View more briefings from Eversheds

Analysis from The Lawyer

View more analysis from The Lawyer

Overview

1 Wood Street
London
EC2V 7WS
UK
http://www.eversheds.com

Turnover (£m): 376.00
No. of Lawyers: 1,264
No. of Lawyers (Asia Pacific): 68
Offices (Asia Pacific): 3

Jobs

View all jobs from this firm