FTSE 100
Dow Jones

Monday, 10 August 2009

The Emmentaler Agreement

If you thought that Swiss cheese was full of holes, that is nothing compared to the agreement between the US and Switzerland over UBS and its upcoming court case.

The IRS and the Swiss authorities announced that they have a deal that the Swiss will hand over several thousand names and other details of US citizens. But there appears to be a delay, and as reported in the English speaking press, widely copying from Bloomberg reports, there appears to be some ongoing discussion about how the detais will be passed across.

That doesn't sound right. A floppy disk, CD-ROM or memory stick would appear to be enough to hndle all the data, so a quick skim of the Swiss press gives us the real answer. The Swiss Federal Assembly is meeting today to discuss how the matter may be handled under the current Swiss banking laws.

Not easy. Under current laws, the bank has to ask the permission of every deposit holder whose name it wants to disclose.

The Masterley solution? Send the 52,000 requests by post in marked envelopes that can be identified and tracked by the automatic sorting machines of the US Postal Service, or sent by a bulk mailing organisation in the US designated by the IRS.

No comments: