Post by Sapphire Capital on Oct 19, 2013 2:56:14 GMT 4
The private bank is closing shop due to the pressure from the US government tax investigation against its clients:
Media releases
Bank Frey & Co. AG to cease operations
Zurich, 17 October 2013
At the request of the Executive Board, an extraordinary general meeting of the shareholders of Bank Frey & Co. AG has decided to cease Bank Frey's business activity. The decision stems from the increasingly difficult market conditions, ever-growing regulations and the unsustainable requirements that smaller private banks are required to comply with, in part as a result of the tax dispute with the USA.
In recent months Bank Frey has seen costs and expenditures escalate to such an extent that they are no longer sustainable for a small private bank, especially when it desires to remain competitive in the best interests of its clients. This is due to the increasingly frequent and ever stronger regulation of financial institutions.
Chairman of the Board of Directors Dr. Markus A. Frey expressed his deep regret at the decision: “As a result of developments in recent years, circumstances and challenges have presented themselves, especially in Switzerland, that mean it no longer makes sense for a small bank to continue its cross-border services. Bank Frey will therefore cease its operative business activities as a bank.”
Bank Frey is financially healthy and will not be liquidated. The decision to cease banking activities was taken voluntarily and as a result of an analysis of the overall circumstances.
U.S. Department of Justice proceedings still ongoing
As is widely known, the tax dispute between the USA and Switzerland has led to the U.S. Department of Justice (DoJ) offering Swiss banks a unilateral program. However, this is not applicable to the so-called Category 1 Banks, against whom proceedings are already ongoing. Bank Frey belongs to that category as it is the subject of a DoJ investigation, as was published in the Annual Report for 2012.
It should be stressed that in stated proceedings, Bank Frey is a “subject” and not a “target”. The bank has not been indicted and neither is it under the threat of indictment. The bank has also acted cooperatively within the framework of both Swiss and United States law and intends to continue to do so.
Due to the ongoing proceedings and as a matter of principle, no further comments are possible at this time. Bank Frey and its Executives will provide further information in due course.
Source: www.bank-frey.com/en-us/aktuell.html
Honestly its a shame that the Swiss let the US get away with the infringement of the Swiss System and Swiss Authority.
Media releases
Bank Frey & Co. AG to cease operations
Zurich, 17 October 2013
At the request of the Executive Board, an extraordinary general meeting of the shareholders of Bank Frey & Co. AG has decided to cease Bank Frey's business activity. The decision stems from the increasingly difficult market conditions, ever-growing regulations and the unsustainable requirements that smaller private banks are required to comply with, in part as a result of the tax dispute with the USA.
In recent months Bank Frey has seen costs and expenditures escalate to such an extent that they are no longer sustainable for a small private bank, especially when it desires to remain competitive in the best interests of its clients. This is due to the increasingly frequent and ever stronger regulation of financial institutions.
Chairman of the Board of Directors Dr. Markus A. Frey expressed his deep regret at the decision: “As a result of developments in recent years, circumstances and challenges have presented themselves, especially in Switzerland, that mean it no longer makes sense for a small bank to continue its cross-border services. Bank Frey will therefore cease its operative business activities as a bank.”
Bank Frey is financially healthy and will not be liquidated. The decision to cease banking activities was taken voluntarily and as a result of an analysis of the overall circumstances.
U.S. Department of Justice proceedings still ongoing
As is widely known, the tax dispute between the USA and Switzerland has led to the U.S. Department of Justice (DoJ) offering Swiss banks a unilateral program. However, this is not applicable to the so-called Category 1 Banks, against whom proceedings are already ongoing. Bank Frey belongs to that category as it is the subject of a DoJ investigation, as was published in the Annual Report for 2012.
It should be stressed that in stated proceedings, Bank Frey is a “subject” and not a “target”. The bank has not been indicted and neither is it under the threat of indictment. The bank has also acted cooperatively within the framework of both Swiss and United States law and intends to continue to do so.
Due to the ongoing proceedings and as a matter of principle, no further comments are possible at this time. Bank Frey and its Executives will provide further information in due course.
Source: www.bank-frey.com/en-us/aktuell.html
Honestly its a shame that the Swiss let the US get away with the infringement of the Swiss System and Swiss Authority.