Premier financial news blog DigitalOlympus.com has commented on a recent reuters.com news story regarding Swiss private bank Frey & Co. which is set to end operations as a result of unsustainable costs due to the nation’s conflict with the US over alleged tax evasion.
New York, NY -- (SBWIRE) -- 12/11/2013 -- On October 24 leading business news blog DigitalOlympus.com comments on recent news story by Alice Baghdjian published on October 18 on reuters.com concerning Swiss private bank Frey & Co. which is set to close as a result of unsustainable expenses resulting from the country’s conflict with the United States over alleged tax evasion.
According to the reuters.com news story, the closure of the Swiss private bank Frey & Co. will be the second of such since the dispute started. Since 2010 Switzerland and the United States have been at loggerheads over a U.S. campaign to get Switzerland's banking secrecy laws broken so it can detect possible U.S. tax evaders, a campaign which led to the closure of Wegelin, Switzerland's oldest bank, in January due to allegations.
In response to the report, DigitalOlympus.com principal researcher Josh Cole commended the efforts of the United States government to identify tax evaders using Swiss banks. “It’s also noteworthy to mention that the efforts of the US government can be reinforced if it chooses to hire firms that specialize in corporate investigations,” he said.
The reuters.com news story further indicates that Frey & Co. which can boast of assets under management of 1.9 billion Swiss francs ($997 million) at the end of 2012, declared it was one of 14 banks unqualified for a government-struck resolution program with the U.S. Department of Justice due to the fact that they are already under probe by U.S. authorities.
In a statement following the report, DigitalOlympus.com spokesperson also applauded the attempts of the U.S. government to identify tax evaders in recent years. “The government can also hire independent contractors that focus on fraud investigations to help them fish out as much violators as possible,” he said.
Chairman Markus A. Frey was cited in a statement saying "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."
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