U.S. Court Orders Swiss Bank Pays $74 Million
A U.S. Court ordered Swiss bank Wegelin, once the oldest private bank in the world, was ordered to pay $74 million for aiding U.S. citizens in evading U.S. taxes.
We talked about this just about a year ago and noted that the bank's managers, upon receiving notice that the U.S. was going to come after them, sold the bank's assets, essentially putting this old Swiss institution out of business. I wondered then whether the Swiss banks would continue their world leadership in the private banking business. The jury is still out.
So now, over a year later, the case was finally settled.
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We talked about this just about a year ago and noted that the bank's managers, upon receiving notice that the U.S. was going to come after them, sold the bank's assets, essentially putting this old Swiss institution out of business. I wondered then whether the Swiss banks would continue their world leadership in the private banking business. The jury is still out.
So now, over a year later, the case was finally settled.
Switzerland's oldest bank was ordered to pay a total of $74 million to the U.S. government in the first-ever criminal sentence for a foreign bank accused of violating U.S. tax laws.Notice this was a criminal case. When UBS paid its $780 million, accused of similar activities, it wasn't a criminal case. Then again, UBS is a TBTF (too big to fail) institution, whereas Wegelin was just a relatively small private bank.
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