Banks to charge fee for deposits in CHF

MrMert · #1 26.08.2011, 19:01

I Just heard this on business news, that UBS and Credit Swiss are considering levying a fee to customers with current account balances in CHF in order to keep current account balances as low as possible.
http://online.wsj.com/article/BT-CO-...26-710799.html

fatmanfilms · #2 26.08.2011, 19:53

	Quote:	MrMert
	I Just heard this on business news, that UBS and Credit Swiss are considering levying a fee to customers with current account balances in CHF in order to keep current account balances as low as possible. http://online.wsj.com/article/BT-CO-...26-710799.html

Not so long ago there was a run on UBS, I guess they will be insolvent quicker next time.

NotAllThere · #3 26.08.2011, 19:53

ZURICH (Dow Jones)--UBS AG (UBS) said Friday it may shortly begin to levy a temporary charge on Swiss franc deposits as a way of encouraging its bank customers to keep their cash in the ...

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miniMia · #4 26.08.2011, 20:04

	Quote:	NotAllThere
	ZURICH (Dow Jones)--UBS AG (UBS) said Friday it may shortly begin to levy a temporary charge on Swiss franc deposits as a way of encouraging its bank customers to keep their cash in the ... To continue reading subscribe now.

I didn't even get that far. I only got:

UPDATE: UBS Mulls Fee On Swiss Franc Deposits For Customers

that's it....

RetiredInNH · #5 26.08.2011, 20:11

From the full article (viewable for free by searching from Google News, bolding added):

	Quote:
	It added: "Should we see a continuation of the net inflow of CHF in cash clearing accounts of our banking customers, we might have to take corrective action, within the next few days, by means of an Temporary Excess Balance Fee."

Texaner · #6 26.08.2011, 20:25

	Quote:	RetiredInNH
	From the full article (viewable for free by searching from Google News, bolding added):

Oh there you go, adding reason and balance to what could have been a thread brimming with panic and hostility.

miniMia · #7 26.08.2011, 20:43

	Quote:	Texaner
	Oh there you go, adding reason and balance to what could* have been a thread brimming with panic and hostility.*

I guess now it's just a thread about who can afford to subscribe to WSJ and who can't.

Zuger · #8 26.08.2011, 21:18

	Quote:	MrMert
	I Just heard this on business news, that UBS and Credit Swiss are considering levying a fee to customers with current account balances in CHF in order to keep current account balances as low as possible. http://online.wsj.com/article/BT-CO-...26-710799.html

No no, this is to push down the value of the Franc. They did this in 1966 and 1978 as well..... The SNB will make it mandatory in the near future. It will be more extreme for non-residence who hold accounts in CH.

decider10 · #9 28.08.2011, 13:10

This is what you can effectively call a "negative interest rate"; it was done before to deter foreigners from flocking to the Swiss Franc in the 1970s.

However, how effective will this be? It is possible to open Swiss Franc accounts with non-Swiss banks in other countries (like the UK); you will just end up having foreigners flocking to Swiss Francs abroad instead.

Zuger · #10 28.08.2011, 13:15

	Quote:	decider10
	However, how effective will this be? It is possible to open Swiss Franc accounts with non-Swiss banks in other countries (like the UK); you will just end up having foreigners flocking to Swiss Francs abroad instead.

Then again, most of the EuroFrancs offshore are backed by crap such as Hungarian mortgages and Polish commercial paper! Thats like being long the Austrian banking system. No thanks....

Last time they did this it took the Franc about 12 months to weaken.