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I love a stink
My kind of story in the Swiss papers today. I love it when big shot central bankers get their dirty laundry made public.
Kashya, the wife of Phillip Hilldebrand (head of the Swiss National Bank) sold Swiss Francs just a few days before the Swiss National Bank initiated exchange controls and devalued the Franc. The timing of the transactions was nearly perfect. The suggestion is that “pillow talk” between husband and wife lead to the trades.
Don’t expect heads to roll over this transgression. There has been a complete review by Swiss authorities and the conclusion is that there were no insider trading violations by the wife.
That’s not to say that trades did not happen.
Apparently, Kashya Hildebrand bought ~$500,000 when she shorted the CHF. This relatively small transaction netted the Hildebrand family only ~$50,000 in less than one month. Being that the amount is so small, the conclusion is that nothing nefarious has taken place. From NZZ.
Therefore no central banker in the world would risk his job.
Really? Only $50k extra for the wife’s account? That’s not enough incentive? I guess so. Hubby earns CHF 862,000 ($950,00) at the SNB. (A sweet deal, Ben Bernanke takes in less than $200k)
What's fascinating about this story is how it came about. Who blew the whistle on wifey?The answer is that Kashya Hildebrand maintained an account with a (very) private bank called Sarasin. When she did the trades back in August someone at the bank alerted an opposition politician, Christoph Blocher. Blocher brought the evidence to the Swiss President, Micheline Calymy-Rey and insisted on an investigation.
The information was leaked by a bank employee? To a politician? Folks, this stuff is not supposed to happen in Switzerland. This is the land of banking secrecy. This leak is highly illegal. This affair proves one point. There is no secrecy left in Swiss banking (for residents and non-residents alike). Anyone who thinks there is, is just wrong.
It’s not possible to know the facts in this story. It’s been whitewashed. There are a number of possible scenarios. I wish I knew which one was right:
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-Philipp Hildebrand never told his wife about the pending exchange controls and devaluation of the CHF.
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-Kashya Hildebrand acted independently; she never informed her husband of the transactions she made with the family’s money (she also bought dollars and sold CHF for her daughter).
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-Kashya Hildebrand routinely bought and sold dollars. The timing of the transactions (August 15th) was pure coincidence.
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-No other employees of the SNB (or their family members) sold Swiss Francs in advance of the devaluation.
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-ALL OTHERS.....
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This story stinks. It’s about political intrigue, stolen information from secret banks, leaked information from Central Banks and possible insider currency trading. A nice way to kick off the New Year!
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moved all of my money to Singapore 3 years ago, much safer than Europe
How do you know that Singapore is not running the same scam as MF-Global and your money is really in London and being lent to Greeks?
Competition amongst the banksters will drive everyone down the same pit when no legislation restricts them. The globalised version of "the bad money driving out the good".
Yeah I used to do all my banking in Singapore, before I took an arrow in the knee.
I've moved some of money there, but still prefer some additional (geographic) "diversification".
I sleep better when all of my eggs in not in 1 basket but YMMV.
"moved all of my money to Singapore 3 years ago, much safer than Europe"
I'd like to do that too - is there any way to open a bank account there without a trip?
http://www.bankofsingapore.com/contact-us.html
Next time try the internet.
Sovereignty ain't what it used to be. When your junkie Uncle gets really desperate for his next tax fix, Singapore will roll over like all the rest. (Well, maybe not North Korea -- care to make a long-term investment in kimshi?)
http://online.wsj.com/article/SB1000142405297020487900457710863227307037...
Much like the Raw Milk issue, kimchi is just another item the govt wants to control and prosecute over. It has been eaten for thousands of years and NOW they have problems with it because people aren't taxed enough about it apparently or there aren't enough regulations about it.
I am considering petitioning the government for the creation of the Federal Kimchi Task Force in these desperate times when kimchi violations are rampant and destroying society. It may well be the best use of tax dollars ever spent.
It's hard to identify a particularly noxious fart these days when everyone's farting at once in a crowded elevator after a beer, bean and cheese combo burrito fest. That timeless immutable law thing about there's safety in numbers and such.
Yes exactly who does Switzerland serve?
For hundreds of years it has been useful to the powerful, but I feel the winds of change.
I still smell the breaking wind of 'it never changes'.
Connecticut.
It has also been usefull to the pullers of gold teeth from mounds of bodies.
$50,000? I wouldn't even get out of bed to make that much.
Apparently she didn't get out of bed to make the money.
It's just pocket-change to cover the first month of operation nut on that ritzy boutique she's always wanted.
woohoo you de man.
Austria already has the Crown.
care to explain?