MBaer Merchant Bank liquidation, US Treasury’s “Section 311”

Michael Bär great-grandson of Julius Baer’s founder grew up during the heyday of Swiss private banking

“Section 311 is not used a lot but when it is, it is the kiss of death,” said Tom Keatinge, director of the Centre for Financial Crime and Security at the Royal United Services Institute. 

US Treasury secretary Scott Bessent in February said: “MBaer has funnelled over a hundred million dollars through the US financial system on behalf of illicit actors tied to Iran and Russia.”

The bank’s downfall cuts against Switzerland’s more than decade-long campaign to clean up its financial sector after the scandals of the banking-secrecy era.

Critics say it also raises questions about whether Swiss authorities moved quickly enough given the scale of risks that later emerged.

Financial Times 21 April 2024

https://www.ft.com/content/861bbb39-9cdb-4e80-933a-46b0d7104e5e?syn-25a6b1a6=1

Köer utanför banker i Schweiz 

- lika osannolikt som att Swissair skulle stanna på marken av pengabrist

https://englundmacro.blogspot.com/2015/01/customers-queue-around-block-to.html

Swissair was grounded in October 2001 because it ran out of cash and could not pay for jet fuel and landing fees; suppliers had begun demanding prepayment, and some aircraft were even impounded abroad

https://www.perplexity.ai/search/swissair-on-the-ground-no-mone-3_IXp8Y6Tr2NES0jStydsA

A year ago Philipp Rickenbacher, then the chief executive officer of Julius Baer told his wealthy customers that the 133-year-old institution’s balance sheet was “rock solid” and adhered “to the highest risk-management standards,” 

https://englundmacro.blogspot.com/2024/03/julius-baer.html