Posted on 8/29/2009, 3:40:00 PM by SeekAndFind
This Wednesday morning, I received a phone call from Rob Vrijhof, (right) our long time investment and banking associate in Zurich and a member of the Sovereign Society Council of Experts.
Rob called my attention to the announcement today by the venerable Wegelin & Co., Switzerland’s oldest private bank, that it will stop doing business in the United States and with Americans.
Founded in 1741, the St. Gallen-based bank, said their decision was a response to stricter measures introduced in the U.S. against tax evasion and projected changes in U.S. estate tax laws, which could make some non-U.S. citizens liable for U.S. taxes if they inherit U.S. securities.
The bank did not mention new U.S. government demands that offshore banks giving investment advice to U.S. persons must register and qualify under SEC rules…which is itself a blatantly illegal attempt to extend American law well beyond its normal jurisdictional area (which ends at the U.S. border, regardless of what the feds may have you believe).
So drastic have the IRS/SEC extraterritorial measures become that even members of the U.S. Congress have protested they go too far. “Untenable Position”
In their letter to investors, Wegelin bank said Swiss banks were being forced into "an untenable position," and in all fairness, they make a good point…
Given the lack of clear definitions in the IRS proposed rules, Wegelin believes the imposition of being expected – by the IRS – a to know which clients were liable to pay U.S. taxes is "an impossible undertaking.”
"The danger of inadvertently making false declarations to the U.S. tax authorities will be too great," the letter went on to explain.
The bank gave the United States an added zinger, saying it believes the U.S. government overestimates its attraction as a financial center, thus Wegelin is advising its clients to pull out of all U.S. securities investments.
So the inevitable question, then…Are more banks going to follow in Wegelin’s footsteps?
Already the IRS-plagued UBS has (for selfish reasons) abandoned its U.S. customers, as has Credit Suisse. Reports say that some Swiss private banks still are willing to serve American clients, and we know that to be true. British bankers also have been discussing a ban on U.S. clients.
Obviously, and as always, The Sovereign Society now has in place agreements with reputable Swiss private banks willing to accept new accounts from those who identify themselves as our members.
These arrangements are in full compliance with IRS and SEC rules and with other U.S. laws. A U.S. client must sign an IRS Form W-9 that allows the offshore bank to report required information to the IRS.
As it has been since our founding 11 years ago, our staff is available to assist in opening a Swiss or other offshore account. Take advantage of these special Swiss banking arrangements -- sign up here for Sovereign Society membership. Once you are a member, you can contact us for help via email at info@sovereignsociety.com
Yours truly,
Bob Bauman, JD Legal Counsel for The Sovereign Society
Something just doesn’t look Kosher here.
Guess who Barack Obama is paling around with this week during his Martha’s Vineyard vacation?
Would you believe Robert Wolf, president of UBS Investment Bank and chairman and CEO of UBS Group Americas?
That is indeed the same Swiss bank that has been in the news constantly during the last year…with its staff admittedly assisting thousands of American UBS account holders to evade what the IRS claims is billions in taxes owed.
It turns out that Wolf turned out to be one of the President’s leading fund raisers in the 2008 presidential race.
Missing from the roster of witnesses before Sen. Levin’s July 2008 subcommittee hearing regarding offshore tax havens was that very same Robert Wolf, in spite of the fact that he is CEO of UBS America.
But then by the hearing date Wolf had already collected and bundled more than $370,850 in campaign contributions for Obama, making UBS Obama’s fifth largest corporate donor in his 2008 presidential campaign.
I guess UBS’ Wolf didn’t qualify as a lobbyist, since candidate Obama pledged never to take cash from lobbyists.
Gee that’s funny and here I thought the election of Obummer was to make other countries change their bad opinion of us.
Guess it’s time for Obummer to go back to Europe for another apology tour.
Or am I just imaginin'?
This isn’t really a news article; it’s an ad soliciting clients.
I don’t mean that it isn’t worth posting, because it does give us some interesting information, and a warning of possible future consequences. But readers should be aware that the source has an axe to grind.
Why is it that despots and tyrants seem to make all transactions with them like that of the prostitute and the john? Those of us who believe in democracy may be fools in love, but we believe in love. We aren't so cynical as to make all our relationships about money. Sometimes we just do things for love.
Let’s face it. The USG is puting currency and investment controls on US Citizens and Residents. They are trying to prevent the flight of capital out of the US. Usually this has just the opposite effect..people become unwilling to invest in the US or leave their money here.
There are lots of ways around these rules. I doubt that many big time foreign investors have accounts in their own name anyway. Corp accounts with Corp lawyers and accounts with signature athority.
This whole thing is a big red flashing light...
They may shortly start restricting investments in commodities and currencies.
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