Photo: Swiss Federal Customs Office
BASEL / GENEVA, SWITZERLAND – Lower prices across the border in France thanks to the high Swiss franc don’t always mean the Swiss lose out: the Swiss Customs Office says that in 2011 its revenues rose thanks to import declarations, from CHF28.7 million to CHF39.8m.
Imported border goods remain nevertheless a small part of customs revenues, only 0.2 percent of the CHF23.47 billion, which is more than one-third of all Swiss federal revenues.
The 30 percent increase in declared goods was accompanied by revenues from those who couldn’t resist the temptation to buy more without declaring the goods, as the number of contraband merchandise cases rose by 36 percent.
Customs offices and border guards say that while contraband goods are brought in by amateurs and professionals, they focused on the second group last year and uncovered 5,800 cases, some 400 more than in 2010.
They delivered 2,960 people to the police and discovered 1,477 falsified or illegally used documents and 1,308 illegal arms.
They seized, among other drugs, 208 litres of KO drops, more than triple the quantity found in 2010 and equal to 100,000 doses. It has no smell or taste and is “regularly used in kidnappings and sexual crimes”, notes the federal office.
Seized in Bardonnex, 2011
The most popularly imported illegal drop was Viagra-type erection drugs and the most popular source country was India.
Foods remain high on the list of illegal imports: fruits and vegetables (818 tons), cereal for human consumption (41 T), spirits (32 T), Wine (24 T), Meat and meat products (28.5 T), Olive and other consumable oils (20 T), Milk and cheese products (3 T).
St Prex, Switzerland and Lake Geneva: -10 before noon, with an icy wind, 6 February 2012
GENEVA, SWITZERLAND – If you’ve been talking to friends about our Arctic weather, you should revise your description, for in recent days it’s been warmer in Svalbard, far north in the Arctic, than in Milan, Italy or Istanbul, Turkey, according to the World Meteorological Organization (WMO) in Geneva. Svalbard has seen 5C in recent days while Milan can expect -10 by the end of this week.
We’re currently in a “negative Arctic Oscillation” in Europe, says the WMO, based on reports coming in from its members, national weather services around the world.
The Arctic Oscillation “is the difference in pressure between Polar areas and mid-latitude areas (where most of the population in Europe lives). At the moment there is a negative Arctic Oscillation, which favors cold conditions in Europe and relatively warmer conditions in the Arctic.”
Our glacial temperatures are not even setting new records. “The long duration of the cold period, its relatively late onset and the extent of the cold area are noteworthy but not exceptional. The continental cold air extended even over the Balkan peninsula; slight ongoing frost was recorded even in northern Greece” in the past three weeks.
Meanwhile, Svalbard but also much of North America has benefited from mild air moving over the North Atlantic northwards over Iceland up to the Arctic region, according to the WMO.
"El Pisolero" Alberto Contador during the 2011 Tour de France (photo, SaxoBank)
LAUSANNE, SWITZERLAND – Spain’s Alberto Contador has been suspended from cycling for two years after the CAS sports tribunal in Lausanne, TAS, found him guilty on one count of doping. The winner of the 2010 Tour de France loses his crown as a result; it should now go to Andy Schleck of Luxembourg who came in second.
Contador was accused of using clenbuterol. The rider argued that he ate steak from a Basque producer, which accounted for its presence in his system.
Clenbuterol is sometimes used by farmers, although its use is banned in Europe. The hearing was in November but the CAS issued a statement earlier saying the final decision would be delayed because media rumours about the fairness of the hearing had prompted the organization to ensure the parties all agreed to the members of the panel.
The three-member panel’s president, Efraim Barak of Israel, had refused at one point to accept testimony of an expert witness brought in by Contador’s lawyers.
The two other members of the panel are Swiss: Quentin Byrne-Sutton, a Geneva lawyer, and Ulrich Haas, a Zurich professor.
Contador is the second Tour de France winner to lose his title for doping; Floyd Landis, American, lost it in 2006 title after testing positive for testosterone.
Fire death, drunk driver victims, high speed chase part of busy weekend emergency services work
Strong winds coupled with frigid temperatures whipped up icy flames on the lake surface Monday morning
Lake Geneva views of opposite shorelines obliterated by heavy waves and two metre high tongues of icy mists Monday 6 February
GENEVA / LAUSANNE, SWITZERLAND – A new record low temperature for this winter was set in canton Graubuenden’s Engadine region, in Samedan this weekend: -35.1C.
The death toll from the cold in Europe, now estimated to be over 300 people, continues to rise.
In Switzerland, the icy weekend kept police and firefighters busy, and Touring Club Suisse (TCS), the automobile club, had a record 23,000 calls to help motorists.
Trains are running slow in several areas as the CFF rail company deals with icy lines and other cold-related problems.
Burst pipes caused flooding Saturday and Sunday, notably in Geneva and Lausanne, reports TSR. The head of Swissgrid, which manages the Swiss electricity supply, told NZZ in Zurich this weekend that the country risks blackouts in coming days because the system is pushed to its limits.
A main SSR (public broadcasting) emitter on top of Säntis mountain gave way under pressure from heavy snow, according to 24 Heures, and is using emergency power.
Vernier drunk driver crashes into trio
Police in Geneva were called to Vernier Saturday night where a 25-year-old man with a two-week old grudge against a nightclub worker left the establishment on Chemin des Batailles and got into his parked car, then drove into three young customers of the club, narrowly missing the club employee.
He had been drinking in several night spots and his alcohol level was measured at 1.69 after the accident, according to Geneva police. His victims were a 20-year-old Geneva man who lives in Vernier who was treated at the nearby Hopital de la Tour and two women who were taken to the cantonal hospital. The 19-year-old woman, who is Bolivian and lives in Rolle, is being treated for several facial injuries and the 18-year-old for a broken leg.
The driver continued and crashed into a number of rental cars parked nearby. He is under arrest for attempting to cause severe bodily harm and on other charges, and his license has been lifted.
Lausanne police chase ends in three captured
A car in Lutry with four people suddenly took off Friday when police stopped it and led area police on a high-speed chase as far as Chemin Campagne Pierraz-Portay in Pully, where the passengers took off on foot. Two were caught and arrested, along with the driver, when police discovered a quantity of goods stolens from homes in the Lausanne region. The car had Belgian plates and the two Algerians and one Iraqi were from Belgium, ages 32-35. Police are looking for their partner.
One dead in Martigny fire
One person died and another was saved by firefighters from a second floor balcony of an apartment building early Saturday 4 February when a fire broke out.
The identity of the victim is being established, say canton Valais police.
The first floor apartment was unoccupied. The cause of the fire, at 01:15, is being investigated.
©2012 Chappatte, distributed by Globe Cartoon. More cartoons on Chappatte’s web site. Geneva-based Patrick Chappatte works for the International Herald Tribune, for Geneva newspaper Le Temps, and for NZZ am Sonntag. All cartoons reproduced with permission.
Swiss media, political reaction won’t comfort Wegelin
ZURICH, SWITZERLAND – Wegelin, Switzerland’s oldest private wealth management bank 2 February became the first bank outside the United States to be charged with fraud by the US Department of Justice (DOJ). It has been summoned to appear in a US District Court in Manhattan, New York 10 February.
The bank, which has no US offices, announced 27 January that it was, for business purposes, closing its doors, after selling off the bulk of its business, all non-US business, to Swiss bank Raiffeisen. It said in a statement last week that “Wegelin & Co. Private Bankers will remain in existence to finalize the closure of all remaining US client relationships and to continue the negotiations with the US justice authorities.”
The DOJ announced, in a long and detailed press release, that the bank “was indicted today for conspiring with US taxpayers and others to hide more than $1.2 billion in secret accounts and the income these accounts generated from the Internal Revenue Service (IRS).” The Justice Department announcement (read in full) 2 February notes that “This is the first time an overseas bank has been charged by the United States for facilitating tax fraud by US taxpayers.”
Several Swiss media and political figures responded to the detailed charges against the bank with astonishment that after the 2008 UBS debacle other Swiss banks could have taken the risk and flirted with breaking Swiss law in their attempts to woo former UBS American residents. TSR carries several video and audio clips, including an interview with Geneva legal specialist Marc Henzelin, who points out that there are far more “transactions” or deals in the US legal system than in Switzerland and the bank’s representatives must now start their negotiations. Politicians heading into a meeting with the Swiss Federal Council Friday were critical of Wegelin’s behaviour.
Bank used secretive methods to woo clients, says DOJ
Preet Bharara, US Attorney for the Southern District of New York, is cited in the DOJ statement: “As alleged, Wegelin Bank aided and abetted US taxpayers who were in flagrant violation of the tax code.” In particular, it is accused of using secretive methods to obtain former UBS clients after Switzerland’s largest bank paid a fine to the US and stopped servicing US-domiciled Americans in 2008.
The undeclared money was held in Wegelin accounts belonging to 100 US taxpayers, people domiciled in the US, according to the indictment, which covers the bank’s activities from 2002 to 2011.
A second indictment was filed against the bank and three employees, all residing in Switzerland: “Wegelin is charged in a superseding indictment with Michael Berlinka, Urs Frei and Roger Keller, three client advisers at the bank”, the result of Wegelin using its correspondent bank UBS to issue payments to US-based clients. Government officials seized $16 million in Wegelin’s correspondent account at UBS in Connecticut as a result of that indictment.
The trio face up to “five years in prison, a maximum term of three years of supervised release and a fine of the greatest of $250,000, or twice the gross gain derived from the offense or twice the gross loss to the victims”, according to the Department of Justice Tax Office. They have not been arrested, the indictment points out.
Warfare vs negotiations
The story is being widely covered by major US and financial media, which have mainly republished the DOJ announcement, including Bloomberg and the New York Times. Reuters writer Lynnley Browning, who frequently covers Swiss banking and US tax issues, often citing a source in the US government, has added a number of details from the indictment itself. She characterizes the ongoing Swiss-US double taxation treaty negotiations as a “row”: “On Tuesday, the Swiss finance ministry handed US authorities encrypted data on bank employees who served US clients suspected of dodging taxes, and said it would only provide the key to decipher the data once the row was settled.”
Swiss President Eveline Widmer-Schlumpf told a parliamentary tax commission that one part of the negotiations involves finding a “global solution” to charges against an additional 10 banks, including Credit Suisse.
Swiss president continues to seek “lasting solution” to avoid continually digging up the past
She met with US Secretary of the Treasury Timothy Geithner in Davos last week and said afterwards that she had made clear “Switzerland’s concern for a lasting solution to be found in the tax dispute with the USA.” She told Swiss media after Davos that both countries are interested in finding a solution that will end recurrent US investigations into Swiss banks. “We’re investing a lot of time in finding a solution, as are the Americans, and sometimes we move ahead and sometimes we aren’t able to, but we now must find a solution. I don’t want to find us, every year, discussing all over again how to resolve problems from the past.”
Martin Naville, head of the Swiss-American Chamber of Commerce, on Swiss television over the weekend rebutted media attempts to profile that talks as warfare. “We are in a process of negotiations, not at war,” noting that Switzerland’s move to hand the US encrypted data is a normal part of negotiations, where “you have to give something from time to time.”
TSR report, Fr
Update: we have had to remove the video from this page because of a TSR technical problem that made the sound come on automatically if GenevaLunch opened on your screen; our apologies for the inconvenience.
BERN, SWITZERLAND – Data privacy concern is increasingly raising its head in US-Swiss talks over taxes, visas and banking. The latest incident is linked to Switzerland’s decision to continue participating in the US visa waiver programme.
Parliament will have its say in US data demands for visa waiver programme
The Swiss Federal Council Wednesday 1 February made it clear it intends to move ahead with negotiations with the US in order to remain in the US visa waiver programme. Switzerland has been part of the programme since 1986 but in October 2009 the US announced that partners in the programme would have to observe two new rules, says Bern. They were told that “partner countries will be required to increase police cooperation. This will entail the conclusion of agreements about the automatic exchange of DNA and fingerprint data to prevent and to combat serious crime (PCSC) and the exchange of data about known and suspected terrorists.”
Swiss media and politicians have been speculating in recent weeks that the US has been pressuring the Swiss government to agree to the new rules and that, given Switzerland’s penchant for privacy and data protection, the Swiss government would refuse. Some 340,000 Swiss travel to the US every year and the visa waiver programme means they can visit as a tourist for up to three months without first obtaining a visa.
But Bern now says it plans to go ahead with the negotiations, noting, however, its own ground rules. The US “requires that two agreements in the security area should be finalized. The Federal Council has instructed the Federal Department of Justice and Police (FDJP) to formulate a negotiation mandate in this area. Parliament and the Cantons will be consulted before the final granting of the mandate. Data protection aspects will be duly taken into account in the negotiation of the agreements.”
Double taxation treaty talks bring up data release questions
Bern gives green light to send thousands of e-mails, but they remain encrypted
The sensitive issue comes up just as the lower house of parliament’s tax commission announced, 31 January, that Swiss President and Finance Minister, Eveline Widmer-Schlumpf had brought it up to date on US-Swiss double taxation treaty negotiations. Details were not provided except to say that the discussion covered interpretations of “judicial assistance”, a sticking point in the negotiations, and “recent demands by the US”, without elaborating on these.
Swiss-German public radio DSR reported, however, that some 4 to 6 million e-mails, mainly correspondence about banks’ commercial affairs, were being offered to the US by at least some of the 11 banks currently under investigation by the US Department of Justice—but that the correspondance is encrypted and will not be decrypted until the two countries reach an agreement. The e-mails contain the names of client advisers. The banks are suspected by the US government of helping US citizens evade taxes.
Encryption until “global solution” found
Spokesperson Roland Meier of the Federal Finance Department then confirmed to journalists the information published by DSR. He noted that until a “global solution” is found with American judicial authorities, names that are encrypted may not be released unless a legal request is made to Swiss authorities, repeating what Widmer-Schlumpf said on television, “We will only decode when we have found a solution with the United States on all the banks that are under discussion.”
A legal request would need to respect the existing Swiss-US treaty and specifically state that the actions of the person whose information is being requested is punishable under both Swiss and US law. Details, TSR, French
Analysis, in French: Martin Naville, president of the Swiss-American Chamber of Commerce, analyzed the situation in a video interview with RSR radio, “Les choses ont changé” (6 minutes, free but registration required)
Switzerland’s vocal Americans joined by even louder Canadians
Americans in Switzerland, meanwhile, are expressing growing concern about their ability to maintain bank accounts for their daily living expenses, mortgages and pensions, with Swiss banks growing more wary of them as clients given US demands for information. A particular sticking point is the Fatca (Foreign Account Tax Compliance Act) law that starting in 2014 will penalize financial institutions around the world that don’t comply by revealing the accounts of US persons to the IRS and collect tax withholdings for the IRS from them.
Switzerland’s Americans were some of the first US citizens abroad to become aware of the problem, because of Swiss data protection issues and US efforts to obtain information from Swiss banks. But Americans living in Canadai are becoming increasingly vocal in their resistance to US efforts to obtain data. The larger US expat community in Canada recently formed the Isaac Brock Society, named after Sir Isaac Brock, who prepared Canadians for war with the United States and gave his life in repelling a US invasion in 1812, according to their site.
Verbier piste avalanche 1 February 2012
Avalanche on the piste at la Croix de Cœur, Verbier, 1 February 2012
GENEVA, SWITZERLAND – There were happily no victims when a sizeable avalanche swept across a groomed ski slope in Verbier at 10:30 Wednesday morning 1 February.
The run was open but rescue workers, who immediately combed the area,say there were no victims. The avalanche occurred at la Croix de Cœur (Le Clou) and it is not yet clear what triggered it. It was 200m long, 20m wide and less than 2m deep on the piste.
LAUSANNE, SWITZERLAND – The Prix de Lausanne dance competition is now underway, and as part of its 40th anniversary celebrations it is turning firmly to the future with new multimedia coverage and opening its doors more widely to the public to show that it has come of age.
The basics for 2012: 79 candidates, 19 different nationalities, selected from 226 applicants on the basis of the videos they submitted. They compete in Lausanne for a week for 20 places in the finals Saturday 4 February. Of this group, eight will be selected for year-long scholarships to one of the 65 Prix de Lausanne partner schools and dance companies, among them some of the top names in the world.
The competition was created in 1972 by Philippe and Elvire Braunschweig and it has developed, particularly in the past five years, into a major international competition in the dance world.
Japanese students are the largest group, with 15 dancers this year, followed by 6 each from South Korea and the US, and 3 from China. Their work sessions are followed closely by the Prix de Lausanne’s videoblog, available on YouTube.
Two young but internationally renowned choreographers who are known to Swiss audiences have prepared works for the competition: Cathy Marsten of Bern Ballet and Didy Veldman, who is working with Geneva’s Grand Theatre.
This year, for the first time, the finals will be commented live on the web in four languages by four prize winners, a lucky move for ballet lovers because seats for the finals have been sold out.
Events open to the public
Lecture demonstration: Tuesday 31 January 17:00-18:15, free of charge.
Selections: Tuesday 31 January, from 09:15 to 13:00 and 14.15 to 16.00, contemporary classes
Selections: Wednesday, 1 February, from 0 08:15 to 09:30, 11:30 to 12:45 and 13:45 to 15:00,
classical classes
Selections: Thursday, 2 February from 08:45 to 20.00, coaching of classical variations
Selections: Friday, 2 February, classical and contemporary variations in front of jury (15-16-year-olds,
09.45 to 12.00, 17-18-year-olds, 13:15 to 16.30)
Finals: Saturday, 4 February, 15:00 to 18:30 (20 finalists: classical and contemporary variations in front of jury), “Interlude Performances” by the London Royal Ballet School and the Danish Royal Ballet School. sold out
Gala: Sunday, 5 February, at 17:00 pm
Max the white stork, in early March 2009, on her snowy nest near the Swiss-German border - will she find snow again this year? (photo: Heida Buergermeister)
BERN, SWITZERLAND – Max knows something the rest of us don’t: spring is on the way. Freezing temperatures throughout Switzerland for the next few days and record snowfalls make it hard to believe, but one of the first harbingers of spring, Max the stork, has started her return north from the area around Madrid in central Spain.
Max’s movements are followed by the Natural History Museum of Fribourg, which banded the bird. This is her 13th winter migration and her movements tell us much about the change in seasons. Some years Max has wintered over in North Africa, but most often she opts for Spain, often further south than this year.
Max is a Swiss-born white stork who has been tracked for longer than any other bird in the wild. She left her summer home in Tuefingen, Saturday 10 September, taking about three weeks to make the trek to her winter home in Spain. Last year she arrived 8 February and was mating a month later. Her five 2011 offspring were born around 20 April.
GenevaLunch background: Max the stork
Monday marks one year since the crime that gripped the Lake Geneva region and beyond
Schepp twins Alessia and Livia, photo 2010
LAUSANNE, SWITZERLAND – A new multi-language missing children hotline open 7 days a week, 24 hours a day in Switzerland, goes into service Monday 30 January: 0848 116 000.
The Missing Children Foundation, which runs the hotline, was set up in October by Irina Lucidi, the mother of twins Alessia and Livia Schepp, who disappeared one year ago today. The line is open to anyone dealing with a child who has disappeared or who may have useful information about a minor who is missing. The foundation’s site currently features five missing children, two of them the Schepp twins.
Sunday 30 January 2011 Alessia and Livia Schepp, six-year-old twins from St Sulpice, left home with their father Matthias, for the last time. He led Swiss, French and Italian police on an international hunt for five days, after their mother reported them missing, before he was found dead in Italy, having committed suicide.
The father, who was upset over the breakup of his marriage t0 Irina Lucidi, sent her several messages during his flight, finally saying in one that he had killed the children, without providing details.
GenevaLunch reported at length on the fruitless-to-date search for the children, a criminal investigation that remains open, although the active phase drew to a halt last April. Vaud Police emphasize that no evidence has been found to indicate that the children are alive, nor is there any that they are dead. The mystery remains, but the family and police are still asking the public to come forward with any information that could help the investigation.
Vaud police report, latest update, April 2011 (Eng)
GENEVA, SWITZERLAND – This report is coming to you a bit later than usual as we waited for the ski news to improve and, happily, it has, but it’s not the perfect weekend for beginners. Sunday promises occasional glimpses of sun.
Yes there is snow, fresh snow, throughout much of the Alps, the depth is excellent everywhere and there is good powder. The snow line has been falling since early morning, to 400 metres in some areas.
The less happy news, for those who like blue skies, is that there aren’t any: gray is the norm. And for less confident skiers, whiteout conditions come and go, especially at relatively low altitudes.
In the news: Vaud is studying the option of a super-region that would connect Gstaad-Diableret-Villars-Gryon. The canton has ordered the “Vision Alpes vaudoises 2020″ study that estimates it would cost CHF160 million to build new lifts to link up the resorts and to recreate others, notably in the Glacier 3000 area. Other runs could be closed.
Note that the Vaud Alps resorts share an information web site, which has useful information in English, but if the links don’t take you anywhere try switching to French.
Keep French and Swiss school holiday dates in mind if you’re planning a ski trip in the near future, as the slopes become much busier at these times. Geneva school break starts 11 February, Vaud and Neuchatel break starts 25 February and French schools break at these times depending on their zones.
This weekend Swiss mountain roads are very icy and chains will be needed in more places than usual, with daytime temperatures just above zero then falling at dusk.
Weather forecast
Temperatures will start to fall, with daytime highs of 2 Sunday in most of Western Switzerland. A mixed snow and sun picture: intermittent snow is expected, with occasional sunshine.
Looking ahead, MeteoSwiss says we could be in for one of the coldest snaps in February in years, with highs next weekend already falling, to -6 and -7.
Special activities, offers in resorts this week
Anzeres has a deal worth considering: reserve before 31 January and you can get 20 percent off on several things including a number of hotels and apartments, ski passes, and equipment rentals.
Gstaad kicks off a winter season of 16 concerts at the beautiful old Rougement church, Sunday 29 January.
Leysin/Les Mosses hosts the start of the beautiful Transalp dog races 30 January. This run that covers 160 km of mountain terrain ends 5 February and is one of the highlights of the Alpine purebred Huskies dog race season.
You can now buy package tickets that combine various fun things like fondue dinners with the Villars Night Show that starts 11 February and is on Saturdays and Wednesdays through March.
Jura report
by Shirley Curran
We have another week before the French holidays begin in earnest and we have been favoured this year by great falls of snow. More is expected at the end of the week. As always, it is a good idea to log in to Monts-jura.com and check the webcams to see our impressive conditions for yourself. Snow depth: 120-155cm, depending on the station.
Ed. note: the site corrected Friday evening’s forecast noting that Saturday morning opened with clear skies, although the web cams show clouding over by noon, so definitely check the site for the latest updates.
Alpine resorts
Holding up against the snow - just
Anzere The snowcross (snowmobile) races as well as the 4x mountain bike on snow races scheduled for Saturday 28 January have been postponed; stay tuned for an update.
Crans-Montana Mostly open, with little wind in the region. Snow conditions superb.
Gstaad 80% of runs are open, but whiteout conditions throughout much of the area
Leysin Slopes open, except superpipe snow park, and hints of sunshine. A highlight this winter, with the great snow, is the village toboggan park that features 8 corridors of 150-200 metres and snow tubing, open from 10-20:00
Verbier Virtually everything open, avalanche risk down to level 2, snow depth at Les Gentianes at 310cm and for the good skiers who love this place, the gray skies won’t matter, although with temperatures at -3 to -10, it’s chillier than it’s been.
Villars Mostly open, 10cm of fresh snow added to the 235cm depth.
ZURICH, SWITZERLAND – US pressure on the Swiss banking world appears to have claimed one more victim, with the announcement by St Gallen-based Wegelin, generally considered the country’s oldest bank, to sell most of its wealth management business to Raiffeisen in an effort to protect its employees and clients.
Wegelin one of 11 banks investigated by US, 2 countries finance ministers set deadline
The news comes just a day after Swiss President Eveline Widmer-Schlumpf told reporters in Davos that the US and Switzerland hope to conclude tax treaty talks by the end of 2012. She made her remarks after meeting with US Treasury Secretary Timothy Geithner at the World Economic Forum.
The discussions have been the subject of much media speculation, both for their timeline and a likely financial settlement, with some reports in late 2011 that Switzerland had proposed amounts, information denied by the Swiss Tax Office to GenevaLunch. Bloomberg/Business Week quotes the president as saying that “I have expressed that we’ve been in talks for a year, that we’ve invested a lot of time and energy to propose a fair solution,” adding that the two have discussed amounts and that “our aim, and he agreed, is to find a solution where we won’t be confronted with a question about the past every year.”
Reuters noted that the amounts are “possible fines [Switzerland's] banking industry will have to secure a global civil settlement with US authorities” and that Switzerland “is also trying to get the U.S. Department of Justice to drop criminal probes of 11 banks, including Credit Suisse and Julius Baer. “‘I assume we will be able to sort it out for these 11 banks as well as for the banking sector as a whole,’ she said.”
What next for Wegelin clients, staff
A statement issued by Wegelin and Raiffeisen says that “a substantial majority of clients and staff will be transferred to Notenstein Private Bank Ltd, which will become a 100% subsidiary of Raiffeisen for an undisclosed sum. This transaction enables Raiffeisen to substantially strengthen its position in wealth management. Wegelin & Co. Private Bankers will remain in existence to finalize the closure of all remaining US client relationships and to continue the negotiations with the US justice authorities.”
GENEVA, SWITZERLAND – The Global Fund, which disburses monies from other organizations to fight Aids, malaria and tuberculosis, is celebrating its 10th birthday this week with a special gift: the Bill Gates Foundation, which gave $650 million during the Fund’s first decade, has just announced it is giving an additional $750m.
The news, announced by Gates at the World Economic Forum meeting in Davos, Switzerland, came a day after the Global Fund announced that Columbian Gabriel Jaramillo has been appointed general manager, a new position “intended to oversee a process of transformation as it accelerates the fight against the three pandemics by focusing on its management of risk and grants.” Jaramillo is the former chairman and chief executive officer of Sovereign Bank and he has more than 35 years in executive positions in the financial industry.
The gift is larger than the promised cash, for it is helping breath new life into an organization that went on the defense last year after corruption, which the Fund itself had uncovered and was investigating, was brought into the limelight by US media, notably the Associated Press, which is owned by US newspapers and is widely distributed there.
Jaramillo, although in a new position, replaces Michel Kazatchkine, executive director, who announced his retirement this week. The new general manager reports to the board and has full executive responsibility for the Global Fund.
Gates, in Davos, praised the group’s track record and commitment to improved oversight, noting that problems with misuse of funds happens if you’re doing business in Africa.
His remarks refer to changes that are the result of a 2011 review by what is called the High-Level, Independent Panel assigned to look at financial controls and oversights. It was headed by former US Health and Human Services Secretary Michael Leavitt and Botswana’s former President Festus Mogae. The board in November approved a “transformation” plan “to address the findings of the Panel, along with a new, ambitious, four-year strategy and decided to appoint a General Manager to oversee this transformation”.
The panel “recommended changes to risk-management, governance and oversight to ensure the institution manages donor resources as efficiently and safely as possible”, the Fund says in a statement.
The Guardian notes in its report on the changing of the guard that “the shock of the corruption revelations, which were pounced on by the US right, and the subsequent loss of confidence in the Fund – which led some donors to suspend payments – was an alarm call. . . What has happened now is a result of a determination that the Fund must not fail. An overhaul is underway, to ensure not just transparency but greater efficiency.”
Mitt Romney (photo, Gage Skidmore / Wikipedia)
GENEVA, SWITZERLAND – US Presidential candidate Mitt Romney, whose estimated net worth is $190-250 million, has made public more than 500 pages of tax records after losing the South Carolina primary over the weekend to Newt Gingrich, who accused the former financial investment manager of not coming clean about his wealth. It is the first-ever disclosure by Romney, even though he earlier served as governor of Massachusetts.
Media reaction today in the US to details of the Romney fortune and the couple’s tax record mentions financial accounts in the Cayman Islands and in Switzerland, but focuses on the fact that he is one of the wealthiest candidates ever for the top US office. The Caucas, a New York Times blog, notes that “The Wall Street Journal and financial wire services showed a vast array of investments from a recently closed Swiss Bank account to holdings in Bermuda to the Cayman Islands, all underscoring the breadth and depth of his wealth.”
The disclosure and debate over it are part of growing evidence that a hot presidential campaign topic will be fiscal reform and the disparity between what the rich and other people pay in taxes.
State of the Union address Tuesday night may focus on economic inequality
President Barack Obama will give his State of the Union speech tonight and, according to CBS News, “Economic inequality is emerging as a central theme in the battle for the White House, with Obama trying to harness populist anger at Wall Street and corporations against a backdrop of chronically high unemployment. He plans to call for higher taxes on millionaires in his State of the Union address to Congress on Tuesday night, embracing an idea advanced by billionaire investor Warren Buffett and Occupy Wall Street protesters.”
Media references to the Swiss bank account are generally limited to implying that it is an indication of his wealth and noting that it was closed at the suggestion of political advisors. CBS News reports that “in a conference call with reporters, Brad Malt, Romney’s trustee, called the Swiss account ‘fully legal, fully disclosed’ but said it was closed in early 2010. He added: ‘The income earned on that account is taxed just as any other domestic or other bank account owned by the blind trust.’”
The news channel goes on to note that “pages and pages are devoted to foreign entities in which Romney is invested. Many are located in places like Luxembourg, Ireland and the Cayman Islands, all famous tax havens. None shows much income.”
Reuters, in an article widely picked up, writes 24 January, that “the emerging picture was of a man of great means who contributes mightily to charity. The documents showed he and his wife contributed $7 million in charity over the two years, much of it going to his Mormon church. That represents more than 15 percent of the Romneys’ income for those years”, more than the tax rate paid by the Romneys, with an
Club increasingly international in its membership but retains American leader
AmClub's new president, Ed Karr
GENEVA, SWITZERLAND – Americans’ reputation for being dynamic and enthusiastic won’t suffer at the hands of Ed Karr, Geneva businessman and the new president of the American International Club of Geneva, which also calls itself AIC.
Karr, 42, is a partner in RAMPartners SA, an investment banking and investment management firm in Geneva, and he’s also known around town for his role as co-chairman of Republicans Abroad Switzerland.
He’s one of the youngest presidents in some years of the 60-year-old AIC, believed to be the oldest American club of its kind outside the US.
Karr is enthusiastic and realistic in equal parts about being a member of what he calls “the best business club in town” at a time when all clubs are feeling the pinch of global economic blues, being an American abroad during a period when the US is coming in for some heavy criticism, and enjoying the pleasures of an international life.
He is married to an Italian and has lived in Geneva since 1997. “We like the city, we like the lifestyle—we really like living here.”
“General specialist” at heart of Geneva’s fastest growing fields: trading, high tech, health care, energy
RAMPartners is a group of six people with backgrounds in institutional brokerage. “We’re independent. We’re general specialists. I know the markets, structures, how markets trade, relationships. We do a little due diligence and screening and we have several specialists available. I’m an expert at finding the experts.” He offers as an example a 3D bioprinting project that was introduced to him, technically capable of printing a new heart (and named one of the 50 best inventions of 2010 by Time Magazine). The project looked exciting, he says, “but I’m not a doctor so I call people I know who specialize in biomedical investments.”
The firm was set up in 2005 and it has helped raise more than $200 million for small capitalization companies in fields such as natural resources, high technology, health care and clean energy. Futures Magazine named Karr as one of the world’s Top Traders” in 2004.
Karr brings his business acumen and contacts to AIC’s leadership. The club itself has for some time reflected changes in the foreign population in the Lake Geneva region. Membership is down from a peak of 1,300 some years ago to 900 today. “It’s tough—all the clubs are struggling to survive,” he says, with declining membership, costs going up and sponsorship down.
Impact of Americans renouncing citizenship
GENEVA, SWITZERLAND – Two new wrinkles appeared Monday 23 January in Swiss media stories surrounding the resignation of Swiss National Bank Chairman Philipp Hildebrand. French-speaking Switzerland’s largest circulation newspaper Le Matin Dimanche yesterday picked up on vague suggestions that have been appearing in German-language media since early January that his wife Kashya, who is American, could have problems with US Fbar (Foreign Bank and Financial Accounts) forms.
And Monday the special commission assigned the task of seeing if Hildebrand respected the central bank’s internal regulations confirmed its 21 December findings: Hildebrand was cleared, although the broader issue of moral responsibility for his wife’s currency transaction profits at a time when he was leading Swiss monetary policy remained.
The former chairman resigned 9 January, saying that he could not prove beyond a shadow of a doubt, once and for all, that it was his wife who had made currency transactions called into question by a stolen copy of a bank statement.
The two-person commission mandated by the Federal Council, the director and vice-director of the Swiss Federal Audit Office, Kurt Grüter and Michel Huissoud, reported to the Swiss government cabinet last week that after reviewing evidence they had not had access to earlier, e-mail exchanges between Hildebrand and Banque Sarrasin, they confirmed their previous conclusion that the chairman had stayed within the rules of the SNB.
Hildebrand case provides Swiss political fodder
The Hildebrand resignation has remained in the limelight in Switzerland, largely because the major political parties have been meeting during the past week to prepare their strategies for upcoming popular votes. The information about Hildebrand’s wife’s currency deal was broken to media by Christoph Blocher, former head of the right-wing UDC People’s Party, who last week talked about the affair for the first time, in an address to the party’s annual meeting.
It turned out, after Hildebrand’s resignation, that the most damning document shown to media was in fact several patched together by a lawyer and politician who is close to Blocher.
Zurich company to help increase Unilever’s sustainability efforts
ZURICH, SWITZERLAND – Barry Callebaut and Unilever Monday 23 January signed a long-term partnership agreement that will double the cocoa and chocolate the Swiss-based company delivers to the Dutch-based consumer goods and foods producer. Barry Callebaut will invest CHF22 million under the terms of the agreement to ramp up to “provide 70 percent of Unilever’s global cocoa and chocolate products”.
Unilver is looking to ice cream products in particular to double sales while reducing environmental impact. The Zurich chocolate company has already helped build sales significantly with the Magnum ice cream line. Unilever has come under pressure, along with other multinationals, for its use of chocolate that is not certified Fair Trade. The company notes on its web site that “cocoa accounts for 4 percent of our total volume of agricultural raw materials. We buy 1 percent of global production, 95 percent of which is used in our ice cream, including in our biggest global ice cream brand Magnum and in Ben & Jerry’s.”
Monday’s press release from Barry Callebaut about the new partnership terms notes that “Barry Callebaut has also been working closely with Unilever to meet its sustainable cocoa sourcing commitments.”
CNN Friday 20 January ran a major investigative news background story on child labour in the cocoa industry, which has resulted in some calls for boycotting chocolate. As part of the network’s series, it contacted the chocolate industry for companies’ responses.
The Zurich company has been addressing the issue for some time and has considerable consumer information on the industry-wide problem.
Details of the deal were not revealed.
13-year high in car sales in Switzerland in 2010
New cars in Switzerland: December 2011 registrations were all-time record
GENEVA, SWITZERLAND – The Swiss Automobile Importers Association has come out firmly against Bern’s announcement last week that the autoroute sticker (road tax) price will jump from CHF40 to 100. Its argument, in aligning itself with truckers associations, is that some of the road tax money will be used to finance the country’s rail system starting in 2030, but the group also argues that the federal coffers have a reserve of 1.7 billion for roads and the tax should not be increased until this falls to CHF0.5 billion.
The rationale for the announced increase is to speed up road improvements that are needed as the number of cars on the road grows quickly. The importers association has just published figures showing that the past two years have seen a significant hike in the number of cars imported into Switzerland, which does not have a major car manufacturing company of its own.
The Swiss Automobile Importers Association notes that in 2011 the country imported and sold 318,958 and by comparison in 2010 the figure was 294,239 cars. The 2011 sales show a 10.6 percent increase in the past two years, with a year-on-year increase of 8.4 percent in 2011 alone.
Last year was the first in a decade when more than 300,000 new cars were registered in Switzerland and the only previous years when sales were higher were 1988, 1989 and 1990. December 2011 is the best sales month that the importers association has ever recorded.
The association points out that new Swiss CO2 reduction regulations for cars go into effect in May 2012 and must be applied to all new cars registered as of 1 July 2012. The change aligns Switzerland with European Union regulations. The one exception is cars brough in from abroad that were registered abroad at least six months before they are imported.
Proposal would allow bank account numbers, balances, capital transactions to be shared in anti-terrorism, money laundering cases
Seeking the full story on money laundering: new Swiss banking secrecy rules may lie ahead
BERN, SWITZERLAND – Swiss banking secrecy could be in for its first serious change, in addition to the pending double taxation treaty with the US.
Wednesday 18 January the Federal Council put out for consultation an amendment to the Money Laundering Law that would allow Swiss authorities to share, with certain foreign government agencies, bank account numbers, information on capital transactions and bank account balances. The information could be supplied if requested as part of money laundering and anti-terrorism investigations.
Today’s proposed legislative changes will now be sent out for consultation until the end of April, at which point the pre-project proposal will be adapted in line with remarks submitted, before it goes through further legislative hoops.
The Swiss-US treaty, which has not yet been approved by parliament, would allow the US to ask for bank data without first providing a name and account number, in a very limited number of cases. It has been reported by US media as a breach in the wall of Swiss banking secrecy, but in Switzerland it is negatively viewed by some politicians as simply a concession to one large nation.
The new proposal would have a far broader impact, affecting working relations with financial investigators in 126 other countries. Support for money laundering laws has, in contrast, been stronger in Switzerland, with the government pushing in recent years to uncover illegal assets of political leaders from elsewhere. As a result, “Switzerland has returned about CHF 1.7 billion to their countries of origin, which is more than any other financial center of a comparable size”, Bern notes, but exchanges with other governments have been hampered by Swiss banking secrecy laws.
Swiss agency will also be allowed to request more information
The changes would also work in the other direction, giving MROS (Money Laundering Reporting Office Switzerland), the agency through which such requests are made, the power to obtain more information from its counterparts abroad than it can today, given the constraints of Swiss banking secrecy laws.
In future MROS would also be able to demand financial details from third parties that have not themselves announced suspect financial activity, not possible today because of banking secrecy constraints. The government argues, in a statement on the proposed changes, that such occasional requests would improve the quality of the information Switzerland can supply other governments as well as information on suspect cases generated here.
The news was announced in the context of efforts by the federal government to reinforce efforts to fight money laundering and to strengthen the Swiss financial industry. Swiss bankers have been under pressure from other governments, in particular to provide information to tax authorities.
Credit Suissse and 10 other banks are currently under investigation by the US Department of Justice on suspicion of helping wealthy Americans avoid taxes.
The proposal is the result of MROS being the only agency among the Egmont group of Financial Intelligence Units (FIUs) from 127 countries that does not share financial information. The Egmont group in July 2011 decided that MROS’s refusal to share information, on the grounds it contravened Swiss law, runs against the group;s principles, and it threatened to suspend Switzerland unless it showed, within a year, that it is undertaking the steps necessary to change the law.
President, head of bankers’ association, say road ahead rough for bank competivity
Swiss President and Finance Minister Eveline Widmer-Schlumpf
GENEVA, SWITZERLAND – The Swiss financial industry is facing tough times which are not likely to soon be easier, two financial leaders said at separate press conferences Thursday.
Swiss President Eveline Widmer-Sclumpf, who is also the country’s finance minister, met with journalists 12 January in Geneva to talk about the future, but the press conference not surprisingly turned to her hectic first 12 days in office.
The Swiss National Bank’s chairman resigned following a scandal, parliament moved into its new session, tax treaty talks with the US are back on the agenda after a holiday break and diplomatic posts were assigned as new ambassadors, including the European Union one, arrived to present their papers.
The financial sector will be a 2012 priority for the government
Widmer-Schlumpf says one of her top priorities is to ensure the stability and sound reputation of the financial sector. The resignation Monday of Philipp Hildebrand as central banker also left Switzerland without its important seat on the Financial Stability Board, an international body of key central bankers who have great influence over world financial policy.
Germany and the UK initialed tax treaties with Switzerland in 2011, as did several other countries (Uruguay and Taiwan in the past two weeks), and one is under discussion with Italy. The European Union opposes such bilateral agreements and has threatened to fight them. The Swiss president said Thursday that Switzerland is ready to review some of the technical issues.
US tax treaty talks: main points sorted out, more discussion needed
The most difficult discussions may be those with the US. Little information has come from either side about the status of the talks, but Widmer-Schlumpf said today that while the main points have been sorted out more discussions are needed. She qualified the talks today: “They are not easy partners, we know that, but still they are constructive.” She added that she hopes the situation can be resolved while respecting Swiss law.
The US Department of Justice is currently investigating 11 Swiss banks for possibly helping wealthy Americans in the US hide money from the IRS (tax arm) and it appears the US is putting pressure on Swiss banks in other ways, with the latest twist reportedly, according to some Swiss media, a demand for the names of all Swiss bankers who have had dealings with US citizens.
The tax talks are taking place in parallel with another Swiss-US set of negotiations, over American requests for access to Swiss police records as part of the US fight against terrorism.
Private bankers and clients face “tsunami of regulations”
Meanwhile, in Bern, the Swiss Privates Bankers Association held its annual day with the press, where President Nicolas Pictet noted that the financial industry in general and wealth management in particular are facing a “tsunami of regulations” that will increase costs and create a number of problems. Penalizing the entire profession “for the mistakes of a few” must come to an end, he argues. “We must stop making it impossible for clients to have room to breathe” – they are the first to suffer when an excess of regulations exists, with the pretext of protecting them.
Pictet did not comment on the specifics of the bank cases under review by the US. He emphasized, however, that while Swiss banks, like any other, must respect the laws of the countries in which they operate, “applying these outside a country is an unacceptable threat for a small export nation” such as Switzerland.
He was echoing concerns voiced by Widmer-Schlumpf 31 December, on the eve of her presidency, who in a radio interview offered a reminder that while banks the Swiss banks embroiled in problems with the US have not broken any Swiss laws, nor committed any moral wrong-doing, those that have broken US law will have to deal with the consequences of that. Part of discussions between the two countries involves clarifying the legal situation.
Basel Zoo's new red titi monkey
BASEL, SWITZERLAND – The Basel Zoo has announced the birth of its latest monkey, a little red or coppery titi, born 27 December to mother Chica, age 9 and father Gunther, age 6.
The pair already have two offspring, unusual for red titis, not often born in captivity.
But as exciting as the news is, equally exciting is the zoo’s observation that the newborn’s two older brothers are carrying him on their backs.
The father traditionally carries his offspring on his back, but Hijo, age 2 and Hermoso, age 1, have been seen sporting their little sibling on their backs. It’s not yet known if the little one is female or male.
The zoo supports a research programme to study the animals in their natural habitat, in Peru.
BERN, SWITZERLAND – The Swiss Migration Office’s current backlog of some 3,000 applications must be completed and applications brought up to date by 2013, former Swiss Federal Judge Michel Féraud concluded as part of his final report on applications for asylum in Switzerland.
But the most damning part of his report covers applications from Iraqis at the Swiss embassies in Egypt and Syria, from 2006 to 2008: the judge writes that a Swiss Justice and Police Department decision in November 2006 to not handle the applications was not in line with procedures defined by law, and it violated constitutional guarantees.
Rigid system contributed to decision to ignore applications, backlog
His report implies that the blame lies with the rigidity of the legal situation, according to a Federal Council statement issued 11 January: all Swiss embassies are required to accept and handle asylum applications, although they are not equipped, in terms of staffing, to do so. The applicants, had they been turned down by Switzerland, would not have been obliged to return to Iraq, since they had been accepted by Egypt and Syria.
One of the debates that was taking place at the time was how to better distinguish between legitimate asylum seekers and migrants. The number of asylum seekers grew steadily from the 1970s, federal statistics show, and the resident asylum population peaked at some 105,000 in 1999. The number of applicants has been in the range of about 10-15,000 annually for the past decade just under 11,000 in 2007, with 15,567 applicants in 2011.
UNHCR (UN High Commissioner for Refugees) figures published in November show that the decline in applications for asylum occurred worldwide, not just in Switzerland, from 2000 to 2010.
Judge not suggesting legal pursuit
Féraud notes that, given the lapse of time and the Federal Council’s stated desire in 2010 to make the regulations less rigid, thus giving embassies more discretion in handling cases, he is not recommending disciplinary action. His investigation did not turn up any acts of wrongdoing such as overstepping the bounds of their authority on the part of government employees.
Blocher headed department in 2005, successors unaware of decision
Christoph Blocher was the federal councilor with responsibility for the Justice and Police Department at the time; his right-wing UDC People’s Party came in for heavy criticism inside and outside Switzerland in 2006 for posters seen to be racist, as the party campaigned to reduce the number of immigrants.
Blocher was succeeded as head of the department by Eveline Widmer-Schlumpf after he lost his seat on the council in December 2007, but neither Widmer-Schlumpf nor her successor as minister with responsibility for the federal office, Simonetta Sommaruga, were informed of the Iraqi applications and the decision to ignore them.
The report was requested by the Federal Council in August 2011 when it was made aware that the applications had not been dealt with for a number of years.
Féraud filed it 22 December and the Federal Council 11 January acknowledged publicly that it had received and is considering the report.
Swiss citizens could need US visas if American demand is met, foreign affairs committee confirms
BERN, SWITZERLAND – The foreign affairs committee of the upper house of Parliament said late Tuesday 10 January that it must be informed if the Federal Council intends to sign an agreement with the US to provide access to police files in the American fight against major crime. It notes that Switzerland, “in the light of recent developments”, must look more closely at the existing crime reduction Operative Working Arrangement II, signed by the two in 2006, to see if from a Swiss legal point of view it needs revision.
The committee did not specify what it mean by recent developments, which could be a reference to US investigations of Swiss banks and reported but unconfirmed threats to indict a Swiss bank, the country’s oldest private bank Wegelin, that have appeared in US media.
Wegelin Tuesday issued a statement that raised the question of the legality of such a move, without confirming that it is being targed by the US Justice Department.
Switzerland has participated since 1986 in the US visa waiver programme, which has given Swiss citizens the right to remain in the US for 90 days without first asking for a visa. The US now envisages, says the commission, signing an agreement with Switzerland as part of the former’s anti-terrorism and major crime fight and it is possible that the US will insist that Swiss citizens need visas to enter the US if Switzerland refuses.
The commission’s remarks appear to confirm Swiss media reports in early December that the US was pressuring Switzerland to sign a “Preventing and Combating Serious Crime” (PCSC) agreement, although the embassy in Bern told GenevaLunch that there is no deadline, but rather ongoing negotiations.
SNB “regrets” his decision and circumstances leading to it – CHF1.20/euro cap remains
Philipp Hildebrand, press conference after he resigned as Swiss central bank chairman
BERN, SWITZERLAND – Philipp Hildebrand, who resigned early Monday afternoon as chairman of the Swiss National Bank, says the decision was his own because “I have concluded that I might not, for some time, be in a position to make the kind of tough decisions and implement them as in the past.”
Hildebrand has been at the centre of a political and media storm for several days over currency transactions that brought his wife CHF60,000 in profit in the second half of 2011. He said at a Monday afternoon press conference called on short notice that “The fact is, my word is my bond. I had no knowledge of my wife’s action. I deeply regret these mistakes as well as the entire situation. . . I have concluded that I might not, for some time, be in a position to make the kind of tough decisions and implement them as in the past.”
He added: “Hopefully I emerge wiser strong and a more experienced banker than I was a few weeks ago.”
The SNB governing board announced that it “regretted” his departure and noted that his decision to leave will not change the CHF1.20 to the euro cap that Hildebrand put in place.
Currency markets reacted to the news with the Swiss franc taking a brief nosedive before Hildebrand’s press conference before the franc closed slightly lower against the euro at CHF1.21 and the dollar, at CHF0.9593.
Hildebrand, who appeared composed and at ease, replied in answer to a question that he had spent hours going over every bit of correspondence, e-mails, phone calls and messages, trying to find something that would refute once and for all, accusations that he might have had advance knowledge of his wife’s action, but he had not been able to come up with that irrefutable piece of evidence.
The credibility of the SNB is its greatest strength, he said, and he wants to ensure that this remains intact, noting that the SNB has contributed significantly to maintaining stability in a world which has recently suffered a number of political and financial crises, notably linked to sovereign debt problems.
“I give my word again: I never lied, things happened as I say they did. But I can’t prove it” absolutely.
Thomas Jordan, vice-chairman, will step into the role of chairman until the SNB appoints a new one.
The Bank Council issued a release noting that “With him, Switzerland is losing an outstanding central banker with excellent international connections, which have brought great benefit to our country.
“Based on the events and findings of the past few days, Philipp Hildebrand has now decided to resign his post. The Bank Council accepts this decision, which Philipp Hildebrand has made in order to protect the institution.
The Bank Council would like to thank Philipp Hildebrand for his outstanding achievements in the field of monetary policy, and for his enormous dedication in the service of both the SNB and Switzerland. Philipp Hildebrand, together with his colleagues in the Governing Board, successfully steered the SNB through a period of exceptional monetary policy challenges. At all times, his endeavour and his goal was the optimal fulfilment of the SNB’s mandate.”
©2012 Chappatte, distributed by Globe Cartoon. More cartoons on Chappatte’s web site. Geneva-based Patrick Chappatte works for the International Herald Tribune, for Geneva newspaper Le Temps, and for NZZ am Sonntag. All cartoons reproduced with permission.
ZURICH, SWITZERLAND – The latest media accusation in the debate over the purchase of dollars and profits from it by Philipp Hildebrand’s family surfaced Wednesday, with Weltwoche weekly political magazine obtaining copies of documents purportedly showing that the Swiss central bank chairman, and not his wife, made the currency transactions (background story, GenevaLunch).
The political magazine also says that Hildebrand bought and sold dollars at least two other times during the year. And it cites a client relations manager at Bank Sarasin as saying that the orders were placed by Hildebrand himself, not his wife as she has claimed. The banker, according to Weltwoche, is aware that he or she is breaking Swiss banking secrecy law in making the claim. A bank employee, but it is not clear if it is this banker or the one who turned himself into Zurich police 1 January for breaking data privacy laws, is reportedly by Weltwoche to be pressing charges against Hildebrand for breaking currency laws covering insider trading.
AP, which is widely picked up by American newspapers, ran a major story Wednesday based on Weltwoche’s article.
270 pointsetta plants were needed to create Schilliger's 3-metre high red Christmas tree in Gland
(Correction: Claudio Carollo below) GENEVA, SWITZERLAND – January sales are now on, but many people are still on holiday, so why not combine great prices and extra time with family and friends – and take along a special gift. We’re leaving some of our Christmas shopping suggestions here because special offers are making several of them more affordable.
Poinsettas
Just the thing for Granny or for the office. The spectacular 3 metre high poinsetta tree at Schilliger Garden Centre in Gland and the huge collection of multi-hued poinsettas, the traditional Christmas plant, won’t fail to inspire. Note: Schilliger is open one last Sunday before Christmas, 18 December, from 09:00-17:00. While you’re there – all clothes are 20 percent off right now and they have beautiful scarves, caps, gloves starting at CHF20, to put under your Christmas tree.
Chateau de Chillon all year, for kids
The castle, Switzerland’s most visited tourist attraction, has a children’s club, membership CHF20 and that includes free entry all year, a great way to stay focused on chivalry, dungeons and crenellations year-round.
Dipping into fitness, affordably
We aren’t going to think about the diet or getting in shape until after the holidays, are we? But how nice to then have a pass, 50 percent off, to a number of wellness and beauty centres in the Lake Geneva region, so you can sample them and decide what fits best. Body Pass works like the well-known restaurant passes and is a nice gift for anyone you know who is likely to have post-holiday panic (not just women, of course). Special offer: if you buy three you get CHF10 off, so maybe your staff would enjoy these. CHF80, valid from now until 31 December 2012.
Meanwhile, don’t forget the port and cheese
Jim’s British Market carries wonderful UK cheeses such as Stilton, in case you know someone who would enjoy a change from Swiss and French cheeses. Great news for Brits and other expats in the area: Jim’s is opening a shop soon in Gland; stay tuned to their web site for the date. This is also a good place to order Christmas hams and turkeys. Note: the shop closed Saturday 24 December at noon, for three weeks.
If you’re buying Stilton, there are two excellent choices to accompany it, and you can find both at Cave SA in Gland, one of the best high quality wine shops in the La Cote area, where you’ll get very good advice about what to buy. Try a bottle of Port (Graham’s 30-year-old Tawny is CHF102, Dow’s 10 year old is CHF32.20) or go one step further and buy the special 6-pack festive season “meditation” bottles, a mix of extraordinary wines, 10 percent off, CHF242.10. Maurice Zufferey’s Malvoisie Grain Noble, part of the box, is beautiful with stilton.
Extraordinary chocolate by anyone’s standards
A new chocolate boutique has opened at 39, Route de Saint-Cergue, Nyon, and even in the land of marvelous chocolate, it stands out as something special: Claudio Corallo, named after the Italian agronomist founder who lives with his family on the tiny volcanic archipelago of São Tomé e Príncipe where they raise extraordinary coffee beans and cocoa, using descendents of the first plants to arrive in Africa – but no point in spoiling the story for you. The shop is open limited hours, note. Lisa V, a GenevaLunch fan, contacted us to correct our text on the boutique: “This shop is a result of his passion for authentic, high quality chocolate and is only open part time because he also a regular daytime job.” Lisa, who read about his shop here, adds that “his chocolate is really good, unlike anything I’ve ever tasted before!” Phone or write first to ask when you can stop by (mostly evenings): +41 22 556 7686, suisse@claudiocorallo.com (Promeco Af S.a.r.l.).
Rolle, Lake Geneva, 16 December 2011
GENEVA / ZURICH, SWITZERLAND – Zurich airport is suffering major disruptions due to storms Friday evening 16 December and Geneva airport saw delays during the day, as winter blew into Switzerland with a vengeance.
Valais police are reporting several roads closed due to heavy snow, and the car/train link between Goppenstein and Kandersteg was closed Friday. Trees are down in several parts of Vaud, with one tree hitting three cars in Lausanne.
Joachim is the name of the storm that blasted its way across parts of the Jura and Bern Friday morning, bringing high winds and storms that churned up Lake Neuchatel.
Zurich airport reported some cancelled or delayed flights Friday morning, notably from Nice, London and Amsterdam, all affected by storms. By Friday evening Swiss was sending people to a “bad weather in Europe” page and Zurich airport was showing several flights cancelled or delayed, including Paris and London flights.
Geneva airport, which opened its new visitor center officially 16 December was only lightly touched, with some London flights cancelled and minor delays as the Lake Geneva region was drenched by winds and torrential rains.
The Swiss Institute for snow and avalanche danger has put most of canton Valais on a red alert (level 4) for avalanche danger. Postal cars on the Gampel-Steg and Blatten (Lötschen) line are not running because of the danger of avalanches.
Weather has also closed several regional train lines, including Rochers-de-Naye.
Lake Geneva at Rolle 16 December, looking towards Evian and the French Alps where the clouds are dumping snow
Snow, snow and more snow throughout the Alps!
"Snow is getting deep here and no end in sight", from a GenevaLunch friend in Zermatt, 18:00 Friday (good luck!)
Updated 21:50 GENEVA, SWITZERLAND – Weather is top of the weekend news, with snow falling and falling in the mountains, at long last, even down to the plain. Zermatt, Verbier and all other major resorts now have snow, an abundance of it, in the villages at the bottom of the slopes, and more is on the way.
A white Christmas is guaranteed at this point, whether or not you’re on the pistes!
If you don’t yet have winter tires on your car, don’t delay: the snow will be mixed with rain and ice in many areas, with wild high winds Friday and Saturday in some areas.
Chains: you rarely need them in Switzerland because main mountain roads are cleared promptly, but be sure to have a set in the car for the winter.
Weather forecast and snow
Golf course in the centre of Crans-Montana, at 1,700m altitude, with snow falling at 09:20 Friday morning (source: CM webcam)
Note for Geneva residents: the city frequently had more than 50cm of snow a year until the mid-1980s, but the amount of snow has dropped since then (flip side is that the amount of sunshine has risen). That doesn’t mean Geneva will be snow-free this winter, but the weekend forecast is for temperatures of 3-9C with rain and strong winds by Saturday, gusting at 90-115kph on the plain.
Jura, but especially northern Jura areas can expect continuing gusts above 110kph.
Driving conditions in the Valais mountain resorts are treacherous late Friday, with snow plows struggling to keep up with the heavy snowfall, so if you’re heading up for a first skiing session, take care. Warm foehn winds blew in lower Alpine areas Friday morning, but by afternoon colder winds with gusts of up to 150kph hit some parts of the Alps, while others had steady but quiet snow falling.
Canton Graubuenden, with its famed resorts of Davos, Klosters, St Moritz and more, has “abundant” snow falling, with lower temperatures than other resort areas, -7C to highs of -1C.
Alpine resorts
Note that they are virtually all closed Friday because of high winds and heavy snowfalls; check the resorts for open runs before heading there for a day on the slopes.
Diablerets and Villars: free skiing (limited number of lifts) for everyone before Sunday 17 December! Snow falling, Glacier 3000 reports snow depths of 50-85cm.
Verbier reports a very high level of avalanches, plenty of snow in the town by late morning and snow continuing to fall. Note that the Friday reports on the web site were a bit behind, noting for example a snow depth of 110cm at Les Ruinettes (2,200 metres) and none in the village (report from 08:00).
Crans-Montana, steady snow falling this week, snow depth has reached 117-150cm in the past two days!
Jura ski resorts
by Shirley Curran
(late Thursday) Last weekend, there was enough snow for our season to begin at the Col de la Faucille, though conditions were rather wet and gloomy. It has snowed and rained intermittently since then and the resorts are now boasting 25cm of snow with more falling steadily and a significant cold snap expected. The official opening date of 17 December 17 seems to be on target. The webcams give you an honest view of the situation.
An attractive offer is being made by the Lake Geneva Tourist Office for anyone visiting the area. Here is an extract!
“For one overnight stay or longer in a partner hotel, you can familiarize yourself free of charge with snowshoeing or cross-country skiing, while exploring the vast spaces of the Jura mountain range. Relax as you discover our 405 km of cross-country trails and our 105 km of snowshoeing trails for all difficulty grades. Well maintained and safe trails await you and will allow you to discover new experiences.”
Neighbouring France resorts
Snow has continued to fall this week and there is no shortage of the white stuff at Meribel, Val d’Isere, Courcheval and other main resorts.
