Rosemont Associates: Swiss Government Sell It’s Stake In UBS.
Rosemont Associates, After deal with the U.S the Swiss government sells shares for a profit.
The Swiss Government has sold its shares in UBS a day after the announcement that the Swiss government would hand over client data from the bank to the U.S government.
The Swiss made a profit on their shares as they sold a 9 percent holding in the bank for $5 billion.
Insiders told Rosemont Associates that this could really damage the reputation of bank secrecy laws in Switzerland. A UBS source told Rosemont Associates that they are unsure of what the law will be in the future and if the secrecy laws are taken away then billions could leave the country.
The Swiss government tried to spin the sale of its shares by saying the bank is on a solid footing again and the exit shows that they do not need the help of the government.
Sources told Rosemont Associates that this was of course untrue and that the deal to give the data to the U.S government gives UBS a chance to rebuild its reputation.
The U.S government is now expected to tackle other institutions who are keeping data secret from them. Rosemont Associates explains the U.S is determined to make the rich pay their way, and its not fair that the poor get taxed and the rich don’t.
Rosemont Associates feels the future of offshore banking may change, how is still unclear, but we are sure that the institutions protecting data will put up a fight otherwise the money will leave their companies to other destinations.
