New Organization in Switzerland Issues Call for Bank Separation
June 28, 2013 • 9:49AM

The Swiss organization Impulswelle.ch will begin circulating a call this week under the glaring headline: "How the FINMA plans to save the banks in Switzerland and why we urgently need a system of bank separation."

The call clearly sets out what is at stake: "On November 1, 2012, the FINMA [Financial Market Supervisory Authority] put into force a new regulation. It obliges Swiss citizens to bail out a major bank threatened with bankruptcy along the Cyprus model, which makes drastically clear what is in store for us.

"Our savings, our retirement benefits and the operating capital of our businesses deposited in the relevant bank are to be used for that. If someone is no longer able to pay his mortgage because of that, he will lose his house or his lodgings through foreclosure. It is highly doubtful that deposits under 100,000 francs will actually be secured in such an emergency. Customer deposits would be transformed into the banks' equity (bail-in), which spells the expropriation of our funds and the end of our well-tried social system.

"The current financial system is headed for an international collapse. We want those responsible for the collapse to be forced to bear the risk, without making the population pay for their losses. The two major banks in Switzerland (UBS and Crédit Suisse) and the insurance giants (Swiss Re and Zurich) are too big to be saved when the next bubble bursts."

So what is the alternative to this diktat, they ask? "Our proposal is to introduce a highly effective bank separation." The call goes on to explain what the original Glass-Steagall Act did, and the current bills for its reinstatement.