One of the consistent arguments against curtailing large bonuses to executives and staff advanced by banks and investment houses is that the “talent” will move to other financial centers. But there are only 5 or 6 places in the world which have the financial infrastructure that “talent” would be willing to move to – New York, London, Switzerland Zurich/Geneva, Dubai, Singapore and Shanghai/Hong Kong were among the financial centers mentioned.
But Switzerland is losing one of its key competitive advantages – the secret banking accounts used to avoid taxes in many countries. A recent reports in the NYTimes reveal how much is being revealed on the illicit numbered accounts and its broad extent in Switzerland. So tax collectors around the world are cracking down with a vengeance given the financial crisis. The Financial Post says this is long overdue and will help redress the coddling of tax evaders and criminal elements.
Singapore maintains that it has weeded out criminals. But that’s what the Swiss said too. There is no way a bank can determine who is behind the person or entity with the numbered bank account. It’s an excuse trying to mask the fact that secrecy havens are willing accessories to crimes.
“Crooks set up offshore corporations in the British Virgin Islands, get a bank account in Singapore or in the Pacific islands or in a trust in the Isle of Man and there’s no way to crack through all of that at the moment,” said Blum.This is why the UBS deal must be only the beginning of a global crackdown. Governments worldwide have incurred enormous debts to pull the world back from its economic brink, due to banking malpractice, and tax evaders must be pursued to help ease the burden on all taxpayers.
Note the company that banksters are keeping – deep pocketed criminal elements. Hmmm the company you keep …. So subtract Switzerland from the list of places Banksters would want to work in.