Moody’s Investors Service today cut its outlook for the Swiss banking system to negative from stable, citing the Swiss government’s diminished willingness to support senior creditors, the New York-based rating company said in a report. Resolving U.S. tax disputes during the next 12 to 18 months will end a period in which it was difficult for banks to attract new customers, Moody’s said.
Excluded from the program are about a dozen category 1 Swiss banks, including Julius Baer Group Ltd. and HSBC Holdings Plc’s Swiss unit. For these lenders, voluntary disclosure is not an option as they are already under investigation in the U.S. Until recently, category 1 included Credit Suisse Group AG, the No. 2 Swiss bank that was fined $2.6 billion in May after it pleaded guilty to aiding tax evasion. UBS AG, the country’s largest lender, paid $780 million to defer prosecution in 2009. more »