Swiss banks reveal their dirty secrets

Swiss bank UBS is in deep trouble over its exposure to subprime debt. But, as David Stevenson explains, things could be about to get worse – so much for the famed superiority of Swiss banks.

Aren't Swiss banks ultra-safe?

That's what everyone thought. Banking information is given similar protection under Swiss law to the confidentiality afforded to doctors and patients, or lawyers and clients, i.e. it stays secret. And Switzerland's neutrality has created a prosperous and stable country in which banks have thrived for over 200 years. At the end of the 1990s the giant Swiss bank UBS was hitting the headlines for all the right reasons. Following its merger with rival Swiss Bank Corporation in 1998 and its takeovers of the likes of UK SG Warburg, and with its smart offices in midtown Manhattan and in the new Broadgate centre in the City of London, UBS smacked of Swiss bank solidity, quality and conservatism.

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