October 18, 2013
Swiss private bank Frey & Co. is to close due to “unsustainable costs” stemming from the country’s dispute with the United States over alleged tax evasion, it said on Friday, making it the second Swiss bank to shut as a result of the row.
Switzerland and the United States have been at odds since 2010 over a U.S. campaign to get Switzerland’s banking secrecy laws cracked open so it can identify possible U.S. tax evaders, a campaign which felled Wegelin, Switzerland’s oldest bank, in January following an indictment.
Frey, which had assets under management of 1.9 billion Swiss francs ($997 million) at the end of 2012, said it was one of 14 banks ineligible for a government-struck settlement program with the U.S. Department of Justice because they are already under investigation by U.S. authorities.
This article was posted: Friday, October 18, 2013 at 5:05 am