Some European jurisdictions like Switzerkand or Luxembourg or the UK may be upset and think that the USA are willing to kill their business.
The USA raises actual problems with Libor or the use of banking secrecy in Switwerland or Luxembourg.
However I wish the USA and Obama were more balanced by admitting their own responsibilities in the current mess and taking corrective actions :
- It seems that the subprime issue was hushed up.
- Jurisdictions like Delaware are not controlled and it seems there is no will to control.
In medio stat virtus.
Reuters reported that the Swiss government still wants to settle a long-simmering dispute with U.S. justice officials over undeclared funds stowed in Swiss offshore funds by year-end.
Switzerland wants the investigations dropped, in exchange for payment of fines and the transfer of names of thousands of U.S. bank clients. It also wants a deal to shield the remainder of its 300 or so banks from U.S. prosecution.
Switzerland was one of the jurisdiction in agreement a couple of weeks ago to fight tax evasion.
Read article from Reuters
It was reported that Germany, the United Kingdom and Austria, are about to ratify the agreement signed with Switzerland to impose a one-time tax in all deposits of citizens with tax base in such country with accounts on Swiss banks.
As the Institute for Professional Studies INC observes , "this arrangement generates questions. What kind of credible guarantees will the Swiss provide the money-receiving governments that they will get the entire amount of the 40% withhold tax on their citizens? Indeed, since no names will be given, such a guarantee cannot practically exist. And how to trust the Swiss government when the British government was responsible for fixing LIBOR for years affecting trillions of transactions all over the world? Furthermore what guarantees will be provided to bank clients that what ever will be left in their account after the cuts will be considered legitimate in their own country and how this legitimacy will be proved? By a Swiss bank statement? And, if the money laundering tax amounts to 40% why all or some of the 27 Member States do not grant their own Tax Amnesty directly with a minimum tax, ie 10% or 20% on repatriated capital hidden in Switzerland or elsewhere?"
Very relevant questions...