Submitted by Tyler Durden on 03/24/2013
Complete the following SAT logic question:
Cyprus : Russian depositors :: Switzerland : [X]
If you answered X = US depositors (for now… soon many more), you are correct.
It has been no secret that in the aftermath of the crackdown of the Obama administration on Swiss-based “whale” accounts, Swiss banks promptly gave up on the legacy model of bank secrecy which allowed them to fund a massive banking sector that has assets (and therefore liabilities) six times greater than the GDP of Switzerland. That this has led to a literal Swiss fear and loathing of anything American, is no surprise: after all banks have blamed the informal US accords, in which the US DOJ can now expose any and every Swiss bank client for the massive layoffs that have ensued in the past several years, hitting not only megabanks UBS and Credit Suisse, but all the smaller players as well.
Now, in the aftermath of the deposit tax in Cyprus, it appears that “wealth taxation” in Switzerland is about to be taken up a notch.
As the leading Zurich financial media NZZ reported and Reuters summarized, the country has reached a deal in principle with the United States over undeclared funds hidden by wealthy Americans in Swiss offshore bank accounts. Naturally, the state was quick to deny it – after all, the last thing they need is a prompt exodus of all big offshore accounts held locally as fears of a Cyprus “wealth tax” on big accounts spreads.
Read more: here
Uh oh…they’re starting to go after the rich people….They’ll stop that for sure…