Swiss Banks Face Expensive US Tax 'Holding Pattern'

Swiss Banks Face Expensive US Tax ‘Holding Pattern’ by Matthew Allen, swissinfo.ch

Around 100 Swiss banks are bleeding money as they wait for a legal process, aimed at resolving United States tax evasion issues, to regain momentum. The programme ground to a halt last autumn after a row over small print with the Department of Justice (DoJ).

Banks had hoped that a deal negotiated by the Swiss government and the DoJ in August 2013 (see box below), would clear up legacy tax evasion issues by the end of last year. But many Swiss banks have entered 2015 still uncertain of whether this will be put to bed in the next 12 months.

“The message being sent out by the DoJ in...