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A Different Version of the "Dumb" Swiss Banker Story

Bruce Krasting's picture




 

 

bloomberg#2

 

bi

 

A funny story out from Switzerland today. It was widely covered in the press (Link). I think the story that is "out there" is bullshit. My take:

 

The story in the media is that a Mr. Beda Singenberger, a Swiss Private Banker "accidentally" sent a list of US clients with black money accounts to the Department of Justice. The DOJ promptly smashed all 60 of them. Money was forfeited, fines were paid and some folks are doing time.

Fairyland. It doesn't work like that.

 

Beda was using a time-honored Swiss tradition referred to as either the "Double Blind" or simply, "Belt and Suspenders". A Swiss lawyer would set up a Trust Agreement for a newly formed trust that was legally domiciled in Lichtenstein. An actual trust was set up in Lichtenstein, but this is just a recording formality that has a small initial cost.

The new Trust is given a secret name; call it "Cassandra". The Swiss lawyer then proceeds to set up an investment account with a friendly Swiss banker. The name on the new account is Cassandra. There is no other information regarding the account other than that the account is legally registered in Lichtenstein.

 

A US person with this set up has two layers of protection from the IRS/DOJ. The first in the Swiss banking secrecy laws. For years it was believed that these laws would protect black accounts. That all fell apart in 2008. There is no Swiss banking secrecy that can provide a shield from the IRS any longer.

But, the second level of protection is impenetrable. The DOJ can lean all they want on the Swiss banker to divulge names. But, in this case, the only thing the banker has is the name Cassandra, and the name of a Swiss lawyer who set the Trust up.

The Swiss lawyers are completely protected. They, like US lawyers, are not obligated to reveal information regarding client activity. The Swiss version of the Attorney/Client confidentiality privilege will not be violated - ever.

 

You have to trust me on this - If I have all the details on how this works, then you can be 100% certain that the nice folks at the DOJ are also aware of the details. The boys at the DOJ hit a wall over client privilege. They must have been working overtime to break this last wall down.

The private Swiss bankers get money from clients, and they invest it. Nothing special, stocks and bonds. To do this basic investing requires a clearing relationship with some NY based entity. Assume that the SEC knew that Beda was dirty, and they wanted to nail him. The DOJ could easily put a block on the assets of the Swiss Private Bank. They would then send a nice letter that says, "Come talk to us".

Note: This was how the Wegelin Bank got shut down in the US.

 

At this point, an expensive D.C. tax lawyer gets involved and "he" has a sit down with "somebody". Cards get put on the table.

The Swiss banker is totally screwed. Not only are the assets of his US customers frozen, but other assets that belong to folks from Iran, South America, China, Africa etc are also blocked. If the banker ends up losing the assets of some pirate from Somalia, the banker will be found dead.

On the other hand, if the Swiss banker turns over the US names  he is in violation of Swiss banking laws, he may end up in Swiss jail, and for sure, his banking career is finished. (He knows who they are - there are cash withdrawls and other decisions that require regular face-to-face meetings.  Zurich is fun - great shopping with all the cash!)

So the Swiss banker's US lawyer cuts a deal. The Swiss banker will "accidentally" provide the names to the DOJ. In return, the DOJ releases any funds/assets that are not US owned.

 

The DOJ is pleased as punch. They finally broke down a double blind. Any other US person who thought they were protected by the Trusts and the lawyers, are now crapping in their pants. (There are thousands in this position today) If they were smart, they would do a disclosure/settlement deal with the DOJ. (Big Fines - No Jail time - No perp walk)

The Swiss banker can go on living. He may look stupid, but at least he doesn't have the Taiwanese mafia after him. And who knows, his remaining (non US) clients will appreciate what he did for them (screw the Americans). They might just give the banker a bit more loot to manage as a result. Everybody is happy - except a few folks in the US who got caught with their pants down.

 

So that's my story. The message in my version is that the DOJ is playing hard ball and winning. They are Terminators, nothing stops them. There is a positive spin to this story - folks who cheat the system are getting nailed. The dark side is that the Terminators are out there, and working 24/7. They have big computers and very big balls. Think of a rhino that puts its head down, and just charges through the bushes. Everything gets trampled in the process.

 

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Thu, 03/14/2013 - 00:38 | 3328714 malek
malek's picture

 "The private Swiss bankers get money from clients, and they invest it. To do this basic investing requires a clearing relationship with some NY based entity."

So you're saying yourself Bruce, the weak point of the "impenetrable" Trust agreement is that the money has to flow in and out somehow. Pretty difficult to do with out a trace (a better word would be impossible for bigger sums.)
And then you want to make us believe the only way to figure it out is to get the Swiss banker to disclose - in times of complete SWIFT control by the US and whatnot?
You must be shittin' me.

 

Wed, 03/13/2013 - 22:51 | 3328463 FeralSerf
FeralSerf's picture

"Go offshore young man and avoid paying taxes. Plunder at will in those foreign lands, and if you get in trouble, Uncle Sam will come rushing to your assistance, diplomatically, financially and militarily, even if you have managed to avoid paying for those government services. Just pretend you're a multinational corporation.

 That's the honest instruction for business success provided by 60 of the largest U.S. corporations that, according to a Wall Street Journal analysis, "parked a total of $166 billion offshore last year" shielding more than 40 percent of their profits from U.S. taxes. They all do it, including Microsoft, GE and pharmaceutical giant Abbott Laboratories. Many, like GE, are so good at it that they have avoided taxes altogether in some recent years."

For the rest of this:

http://www.sott.net/article/259653-If-corporations-dont-pay-taxes-why-sh...

Thu, 03/14/2013 - 09:12 | 3328704 Eireann go Brach
Eireann go Brach's picture

Well someone has to pay for the Beyonce concerts at the White House!

Wed, 03/13/2013 - 20:05 | 3328046 ebworthen
ebworthen's picture

Meanwhile, Jon Corzine is still free.

Considering the legerdemain of Wall Street it is hard to blame people for hiding from the I.R.S.

U.S.D.A. is buying over $800 million dollars worth of sugar using taxpayer money to prop sugar producers.

Why should I pay taxes for that?  Why should I pay taxes to fund Syrian Muslim rebels and an Egyptian dictator?

This country is toast, done, stick a fork in it, tear it down and rebuild it.  The D.O.J. supports droning American Citizens on American soil but can't bust a slimeball that vaporized $1.2 billion of little old ladies and farmers savings.

A fucking joke.

Time to leave.

Wed, 03/13/2013 - 21:50 | 3328286 OpenThePodBayDoorHAL
OpenThePodBayDoorHAL's picture

From secrecyjurisdictions.com:

 

The United States is a major tax haven because it provides tax free treatment and various forms of secrecy for nonresident individuals, corporations and other entities. On the tax side, it charges a zero rate on some categories of income, including interest paid by banks and savings institutions to non - resident individuals or foreign corporations ; interest on government debt and interest on some types of corpor ate debt . On the secrecy side, the U.S. also has weak and relatively few treaty requirements to exchange relevant information with other jurisdictions – which need that information so that they can tax their own citizens properly. The U.S. government also does not require income earned locally by nonresidents to be reported to the U.S. government – which means that even where it may be required to exchange the information under international agreements, it doesn’t have it available to exchange. Furthermor e, U.S. money laundering laws allow U.S. financial institutions to handle the proceeds of a long list of crimes, as long as those crimes are committed outside the U.S. If the crimes are commmitted inside the U.S., handling these proceeds would fall foul of money laundering laws. ( p186 - 9 ) A significant share of U.S. residential and commercial property is owned by offsho re shell companies, under secrecy arrangements that can help non - resident foreigners earn income that can be kept secret from the tax and criminal authorities of their home country . T hese factors, which help the United States attract foreign dirty money , a re significantly the result of deliberate lawmaking rather than of mere omission : t hey represent the classic behaviour of a secrecy jurisdiction. F inancial secrecy provided by the U.S. has caused untold damage to the ordinary citizens of foreign countries , whose elites have used the United States as a bolt - hole for looted wealth .
Wed, 03/13/2013 - 19:35 | 3327936 Bear
Bear's picture

I hope one 'Jon Corzine' was on the list

Wed, 03/13/2013 - 19:04 | 3327861 honestann
honestann's picture

People who "cheat" the "system" are heroes.  You do not "cheat" predators when you fail to pay them protection money, you simply protect yourself.

Don't let the predators convince you to reverse the meanings of key words in your language.  When someone tries to steal from you, to avoid the theft is not "cheat".  And "the system" is nothing but a fraudulent term for "predators".

Keep your concepts and language straight, or the predators will cage you, tie you up in knots, and suck you dry forever.

 

Wed, 03/13/2013 - 19:12 | 3327882 DOT
DOT's picture

The best lie to tell a liar is that you believe their lies.

Wed, 03/13/2013 - 18:56 | 3327838 Big Ben
Big Ben's picture

Singenberger was indicted on July 21, 2011 by the DOJ on charges of helping over 60 US clients hide $184M using dummy entities:

http://www.fuerstlaw.com/wp/index.php/27/beda-singenberger-charged-with-...

He was a CPA tax advisor, not an attorney, and he used Hong Kong as well as Lichtenstein, according to the article.

The interesting thing is that the DOJ seems to have known the names of the 60 clients before they indicted him.

Wed, 03/13/2013 - 18:12 | 3327752 riley martini
riley martini's picture

 Corrections some folks cheating the system are getting nailed others with connections not so much. Liberty and selective justice for some. Knowing how corrupt the system is who could blame anyone for cheating . Just like Greece out cheat the cheaters.

Wed, 03/13/2013 - 18:02 | 3327730 Gold Dog
Gold Dog's picture

Shit! My lawyer said Cassandra was a perfectly safe name to use!

Dog

Wed, 03/13/2013 - 17:50 | 3327704 the grateful un...
the grateful unemployed's picture

Lately there has been a flurry of media stories about corruption related to private contractors and government agencies, mostly DOD, including old stories about Iraq, which is synonmous with the word. Bruce has it right here. It was an inside job, and how much did DOJ pay for this list? I don't care. I would like to know who and why they are doing all this, is it a propaganda campaign by POTUS to jaundice the public view of DOD before they drop the axe on military spending, which is truly out of control (hidden as black contracts).

Latest list of contractors caught up in the SD scandal does not catch any big fish, nothing on the NYSE that I noticed. So far it's guys in about the same tax bracket as this list. The story fits the pattern, token prosecutions. That says Obama to me.

Wed, 03/13/2013 - 19:33 | 3327930 MeBizarro
MeBizarro's picture

Kind of the way I see it too.  Even the old Iraq stories are token stuff and the really duplicitious shit that went on and is still going on with the contractors there is off the political radar.  Its what you do in a banana republic.  You get some low-level schmucks who are guilty of relatively minor infractions, period them around in front of the pols to talk about cracking down on corruption, and tout your horn about what a good leader you are. 

I didn't have a ton of expectations for Obama but did expect that his administration would at least be a slight step up from Shrub's debacle.  In many ways, it has been the status quo with Obama pushing the stuff under the rug and in some ways it has been even worse.  Been hard to see much of an improvement although Obama has generally appointed slightly more capable people at the SEC.

Wed, 03/13/2013 - 17:44 | 3327692 Steve in Greensboro
Steve in Greensboro's picture

Who could be happy that the U.S. Government is successful at financial oppression? 

Only someone just as thuggish as a government employee.

Wed, 03/13/2013 - 17:37 | 3327673 waterhorse
waterhorse's picture

"The DOJ is pleased as punch. They finally broke down a double blind. Any other US person who thought they were protected by the Trusts and the lawyers, are now crapping in their pants. (There are thousands in this position today) If they were smart, they would do a disclosure/settlement deal with the DOJ. (Big Fines - No Jail time - No perp walk)"

"BIG fines"?  Shirley, you jest...

Wed, 03/13/2013 - 20:03 | 3328038 Bruce Krasting
Bruce Krasting's picture

Someone caught in this trap, with multi years of unreported income, no disclosure of an interest in a foreign trust (FBAR violation) is bending over -big.

 

The fees/fines on something like this start at 50% of the principal. There is no limit. If one is caught (vesus a voluntary disclosure) it is jail time.

 

The law fees for this start at $250k.

 

No jest....

 

Wed, 03/13/2013 - 20:22 | 3328088 Bear
Bear's picture

No jail time? Nothing will change without jail time.  Money lost is just vig ... the cost of doing secret business

Wed, 03/13/2013 - 17:38 | 3327666 asteroids
asteroids's picture

Hmm. I wonder how long before IRS agents are found dead. Hardball works both ways. Remember, people all over the world are starting to tire of US extraterritorial influence. Don't be surprised if some day someone strikes back.

Wed, 03/13/2013 - 18:05 | 3327734 the grateful un...
the grateful unemployed's picture

i recall when Carol Lam, SoDistAG prosecuted Duke Cunningham, after the SDUT laid the story on her desk. The SD paper is not known for investigative news but then protestors had been waving signs in front of Cunnighams Del Mar home for six months. It's all political wind, always has been, probably always will be. Lam was later forced out in a political pogrom, (during which Bush fired a lot of AGs who weren't drinking the KoolAid) after a personal campaign against her by Darrel Issa (Head of the Ethics Comm now) for not prosecuting enough smugglers and employer using illegals. haha, she did prosecute a contractor working on the trillion dollar border fence for using illegals. its like the gangsters in the 30's, the DOJ knows where to look, they've been too busy taking bribes to arrest anyone.

Wed, 03/13/2013 - 19:40 | 3327949 divide_by_zero
divide_by_zero's picture

The Bamster ran a similar RE deal with Tony Rezko around the same time as Duke to obtain property next to his home in Chicago, it was in the Chicago papers and yet no prosecution. Could've saved us all a lot of trouble.

Wed, 03/13/2013 - 17:35 | 3327663 waterhorse
waterhorse's picture

yeah, it probably is BS.  On the other hand, some of these bankers aren't the brightest - like Agent Orange Mozilo "replying to all" when castigating a borrower over a plea for help.  The gist of it: How DARE that borrower seek help from the internet and how dare people help him.

Wed, 03/13/2013 - 17:29 | 3327642 the grateful un...
the grateful unemployed's picture

everything gets trampled except that little bird that sits on the Rhinos nose

Wed, 03/13/2013 - 17:05 | 3327552 Fishhawk
Fishhawk's picture

The IRS is a private entity, foreign to America.  It remits its collections to the Federal Reserve Bank, another private commercial entity.  Per the Clearfield Doctrine, it is subject to the same contractual obligations as any other corporation.  To avoid the IRS, simply do not trade in Federal Reserve debt securities.  It is not necessary to 'hide' assets from the IRS.

Fishhawk

Wed, 03/13/2013 - 17:49 | 3327700 JeffB
JeffB's picture

I'd be real careful with that sort of advice. It reminds me of a guy who tried to convince me that our state laws requiring drivers' licenses only applied to commercial drivers, not the general public.

He faxed me a number of documents that seemed to support his position, including documents from lawyers who couldn't seem to refute his interpretations of the laws and cases on the books, at least not to his satisfaction.

He maintained that the lawyers and judges he spoke with were fearful of him because he was right and they knew it... there was no valid means for the courts to force people to have drivers' licenses.

I asked him if he had ever been pulled over. He said "Yes". He had also been issued tickets. I asked him what the judge said to the arguments and papers he presented to them, and he said that they threw him in jail.

Peter Schiff's father, Irwin, apparently had a similar experience with the IRS:

Irwin Schiff

He's written a number of books on the subject, and per most accounts makes a lot of sense, but the bottom line is that those with the power and authority to interpret those laws disagree with him.

Wed, 03/13/2013 - 19:50 | 3327993 negative rates
negative rates's picture

Sounds like a repeat offender.

Wed, 03/13/2013 - 17:01 | 3327534 Panskeptic
Panskeptic's picture

Lichtenstein loses big. It's a fairly unattractive principality surrounded by much better looking places, like Switzerland and Austria. The other local industries are stamps for collectors and a cement factory. That's it.

A few years back a journalist who was researching their unique trusts turned up dead under highly suspicious circumstances. I would match their determination against the DOJ's rhino horn any day. They have more to lose.

Wed, 03/13/2013 - 17:07 | 3327558 August
August's picture

My Liechtenstein sources tell me that the false teeth factory is still doing just fine.

Wed, 03/13/2013 - 16:43 | 3327460 Tinky
Tinky's picture

Interesting, Bruce. But what would be far more important and relevant to most readers would be a story about someone who was not evading taxes being persecuted (or prosecuted) for having a foreign account.

In other words, while the slippery slope potential is clearly there, to this point only tax evaders have apparently been targeted.

Wed, 03/13/2013 - 17:35 | 3327665 JeffB
JeffB's picture

I agree to a certain extent, but even as it stands it's a case of our government doing evil to fight evil. As most of us hopefully learned in kindergarten, two wrongs don't make a right.

What next, torture witnesses to fight crimes? Well, I guess our government has already broken that taboo in fighting "the terrorists". ... or perhaps using drone strikes to fight terrorism... or crime on U.S. shores?

Once we throw out morality with a motto of "The ends justify the means." mentality we're in serious trouble. Yeah, it would be even worse if they were using evil means to achieve evil ends, but that is a slope we're already sliding down.

 

Wed, 03/13/2013 - 19:27 | 3327915 MeBizarro
MeBizarro's picture

There's a big difference between this kind of coercion used by the Dept of Treasury and physicallly torturing a suspect to get a confession or a witness to get information. 

Wed, 03/13/2013 - 19:48 | 3327987 negative rates
negative rates's picture

It's done all the time in the name of national security, their dry powder security and once you get "captured", you don't have enough time left in your life to turn things around. It's the ultimate ponzi awaitng the ultimate conclusion.

Wed, 03/13/2013 - 17:19 | 3327613 machineh
machineh's picture

Don't be too sure. With negative Swiss interest rates and the high fees that Bruce mentioned, Swiss accounts aren't necessarily producing any taxable income.

Note that some of the victims were nailed simply for not filing an FBAR disclosure form.

The status offense of failing to file a piece of paperwork is a felony that can put you in a U.S. prison. 

And this is all fairly recent, past decade or two, emanating from the anti-money-laundering crusade, which in turn derives from the War on Drugs.

Freedom, comrades. Freedom from money laundering. Makes ya feel safe, don't it?

Wed, 03/13/2013 - 16:34 | 3327425 humblepie
humblepie's picture

Thanks for the great story, again, Bruce. Even though I have my reservations about the US tax system, the story does make the 'little guy' like me feel better to know that the elite can be afflicted also. 

Wed, 03/13/2013 - 17:16 | 3327497 notadouche
notadouche's picture

I never understood, being a little guy myself, how having something happen to another person I know nothing about, good or bad, would affect the way I feel.  If some rich guy gets money taken from him it does nothing to change my plight in life so how could that make me feel better.  On top of that the monies gotten go into a bottomless pit of government coffers that will never filter down to the citizen.  The government elites getting a hold of it actually make me sad knowing it will be lost to for certain.  If a rich guy goes poor how does that make anyone else feel better?  If I don't get a direct benefit from the situation then I just don't care.  I would rather have good things happen to me rather than wait around for bad things to happen to rich people.  I just don't get it.  Any money found in Switzerland or anywhere else is not magically coming to my household so who give a damned.    How did your life change for the better in this situation?  

Wed, 03/13/2013 - 18:19 | 3327770 humblepie
humblepie's picture

notadouche:

" If some rich guy gets money taken from him it does nothing to change my plight in life so how could that make me feel better".

I agree with you on that, one hundred percent.  You are taking my comment to a totally different philosophical level, and entirely out of context.

So, if you will allow me, I would like to clarify what I meant about 'feeling better' on someone else's plight. I do feel better that the person who can go into a posh banker's back room and walk out with 50,000 Euros as 'pocket money' and not having had to pay any taxes on his/her hundreds of millions (billions) of USD earned on US soil, while the little guy, like me, pay 20% tax on the measly $50,000 USD I earn in one year, finally gets caught.  I've never wished 'bad' things to happen to anyone, rich nor poor.  I think people have a right to earn money and be as rich as they can be.  I also happen to think that evading taxes is not right.  So, yeah, I feel good that someone finally have to pay up.

" Any money found in Switzerland or anywhere else is not magically coming to my household so who give a damned.    How did your life change for the better in this situation?  "

 

 No, my life hasn't changed and I don't get any benefit from it. I will never accept free money 'magically' coming from Switzerland. Nothing is ever truly free. I believe in earning my money.  I just can't help myself from feeling 'vindicated'.  

Is the US tax system fair and just?  I did say I have my reservations about the US tax system.  But that's a totally different topic.  

Peace brother.

Wed, 03/13/2013 - 21:26 | 3328234 Imminent Crucible
Imminent Crucible's picture

You feel better knowing that the "elites" can get hit too? We're talking about 60 people hiding a total of $184 million. That's an average of $3 million per person.  These are not the "elites" we're talking about. They're immune from prosecution. Jon Corzine stole $900 million in a single morning, via a single wire transfer.  Corzine wouldn't light your cigar for $3 million. Wake me up when they hit Lloyd Blankfein for tax evasion.

Wed, 03/13/2013 - 21:12 | 3328205 notadouche
notadouche's picture

I hear you and I think I knew what you meant but it just gave me an opening to make a point.  So many people seem to only be able to find pleasure in some "fat cat" getting theirs as opposed to focusing on their own life.  In reality, I'm jealous that I can't make that Swiss trip myself.  I would rather be one of the "have's" trying to hide shit than the guy cheering for them being caught.  If I were in their shoes I'm sure I would do the same thing.  What is it they say,  "If you ain't cheatin' you ain't tryin'"  Ironically the thing is most of the political elites are up to worse tax evasion tricks than these guys but they never pay the price.  They get caught and it's "censure" time and all is forgotten.  Pot/Kettle situation for sure.  

Wed, 03/13/2013 - 16:33 | 3327424 NaN
NaN's picture

This is an interesting hypothesis. There must be more to the story since the pressure point is on the bank and not on the Swiss lawyer. The pressure could be transmitted to the lawyer simply by being shut out of the bank, but that would not be enough to completely fold since Singenberger is not in custody.

Notice that the Bloomberg article says the client list sent by snail mail "somehow wound up in the hands of federal authorities". It was not accidentally mailed; that spin was added by Bloomberg editors to spice it up for the skimmers, as the second to last paragraph shows. It is more likely that the mail was opened by authorities, or turned in by a third party, or a ruse to hide the black bag crew. 

From the Bloomberg article on this, the number of busts is about 20 per year, but if amnesty netted 38,000, there are probably a similar sized number of still secret accounts. That would suggest extreme measures to get some high profile busts.

The money hiding game is hardly over. Refactoring or deconstructing aspects of ownership, identity, governance, and reporting, requires spreading paperwork around the globe, as described in  http://SecrecyJurisdictions.com/ . To get the full monty, 5 countries can be involved and not living in those countries is a essential. Further unreachability is achieved by involving countries with reporting deadlines of many months which provides time to make transfers if the heat is on. 

 

Wed, 03/13/2013 - 16:29 | 3327410 moonstears
moonstears's picture

Well, I was not aware of how this worked, (no actual need, personally), but thanks for the simplisticly stated info.

Wed, 03/13/2013 - 16:26 | 3327401 MrBoompi
MrBoompi's picture

I think the general public (if they were intelligent enough) would be quite shocked to hear the explanation of what Trusts and Foundations are, and how they are used to hide money and income from taxation.

 

 

Wed, 03/13/2013 - 19:25 | 3327908 MeBizarro
MeBizarro's picture

They would but how would you put this in terms they would understand and what major news outlet would run such an unsexy and boring story. It's only an issue for politicians if they decide to run in a federal race.

Wed, 03/13/2013 - 16:26 | 3327386 longwind
longwind's picture

So where do I pile my filthy lucre, please? I've got pneumonia from these boating accidents every weekend.

 

Wed, 03/13/2013 - 17:53 | 3327708 Steaming_Wookie_Doo
Steaming_Wookie_Doo's picture

The real question is where are you willing to move to, renounce US citizenship and spend the next 10 yrs not (officially anyway) making much money? Seems like it's a big plan to lean on slightly larger than avg fish, but nothing that would actually solve any fiscal problems. Do ya think anyone will touch all the blind trusts for Warren, Bill or Rockefeller?

Wed, 03/13/2013 - 17:25 | 3327627 bank guy in Brussels
bank guy in Brussels's picture

The great Dr Jim Willie is clear:

« WHERE ARE THE SAFEST PLACES TO STORE GOLD BARS & COINS ??

Hong Kong for a number of reasons will remain the safest place for Gold storage. It has a long history of professionalism, independence, and integrity. Following the independence in 1997, the city state nation has pursued a unique role and direction. It is under the Chinese wing, but has its own regional charter toward continuity and some measure of autonomy. The Mainland China rulers prefer to use Hong Kong as a port to the West, but also to copy it internally. The British roots helped to establish HK bankers as top notch, but they are no longer subservient to London whims. The HK banking hub is the foremost in all of Asia, with a new rival Shanghai having emerged. The HK airport has greatly expanded its vaulted services. My source indicates that the HK vault service capacity is three to five times greater than reported. It has associations with all the major vault firms in an impressive list. Their integrity is as great as their disdain for the US bankers, with whom they show zero cooperation, as confirmed by an Interpol source. The claimed advantages of Singapore are spurious and illusory. Don't bother, since it does not even have a Depository Bond agreement for the bullion vault firms. »

http://news.goldseek.com/GoldenJackass/1361998800.php

Wed, 03/13/2013 - 21:57 | 3328305 FeralSerf
FeralSerf's picture

One can't help but wonder if, when TSHTF, the Chinese will not confiscate the American depositor's assets.  They will probably have plenty of reasons to, including payment default on American Treasuries bu the U.S. government.

Wed, 03/13/2013 - 16:05 | 3327282 SWCroaker
SWCroaker's picture

By all means, let us celebrate government goons cracking down on keeping the citizen-as-tax-slave paradigm alive!   Who the hell needs privacy, or private property, or for that matter *any* defense against the state?  Free speech, sure, but when it comes to your money, it isn't really yours, now is it?

I gag when you gloat "There is no Swiss banking secrecy that can provide a shield from the IRS any longer."   So the legal rules and traditions of Nation X do (and by your tone *should*) yield way to US tax code?  The same laws created by corrupt, nepotist a-wipes in DC?  And administered by the hoards of Napoleon complex little IRS by-law-I-am-right-until-you-prove-me-wrong enforcers?  And the mechanism of forcing the information out is to strong arm, using tactics that by appearances aren't legal in *any* country?

 

Bruce, get your priorities straight.  Any victory for the collectivist gov is just one more little death for you...

Wed, 03/13/2013 - 21:49 | 3328282 masterinchancery
masterinchancery's picture

Very true, but I don't think Bruce was gloating.

Wed, 03/13/2013 - 20:15 | 3328069 Bruce Krasting
Bruce Krasting's picture

Well, I hoped that my reference to Terminators and rampaging rhinos would give you a hint how I feel about this. I don't like invisible hands, especially ones that have super computers and the "right" to look wherever they like.

 

In 2013 the USA will pay $125m to bounty hunters who turned in tax cheats. That scares the shit out of me. Not because I cheat on taxes; it's the "home invasion" angle on this that I find troubling.

Wed, 03/13/2013 - 19:23 | 3327905 MeBizarro
MeBizarro's picture

No they aren't and I am always fascinated by the defenders of the Swiss banking system on here.  For all of there strict ethics about privacy and confidentality, they have none when it comes to accepting money or physical good from any source however dupliticious or horrendous.  Gold bars from made from the fillings of people who were burned alive and gassed?  Great sure.  Funds from a dictator who steals from his people blind and often times kills plenty of them?  Sure.  

Swiss are no different than any other tax haven that launders and hides money.  It just has a better PR rep.   

Wed, 03/13/2013 - 16:48 | 3327478 NaN
NaN's picture

There is no need to crap on the messenger.

I don't detect any gloating by Bruce, he is stating reality without unsavory bitching. Simple Swiss banking secrecy for US citizens is over.

 

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