ISSN 2330-717X

Switzerland: Revelations Emerge About Central Bank Affair


An employee of Bank Sarasin has confessed to leaking information about a currency transaction by the wife of Swiss National Bank chairman, Philipp Hildebrand.

The bank revealed on Tuesday that the employee, who worked in the bank’s IT sector and who had subsequently handed himself over to police, had given the information to a lawyer with close links to the right-wing People’s Party.

“According to the employee, this lawyer then arranged a meeting with [People’s Party deputy chairman] Christoph Blocher, which took place on November 11, 2011,” the bank said.

It added that it had “terminated its employment relationship” with the employee, and reserved the right to take legal action.

Dollar purchase

The revelations concern the purchase of dollars by Kashya Hildebrand on August 15. She is said to have resold them about three weeks later, after the SNB set a minimum exchange rate of the franc against the euro.

The Swiss media have reported that the sum in question was about SFr500,000 ($530,000) and her profit when the dollar rose as a result of the new exchange floor is said to have been about SFr50,000.

Kashya Hildebrand told German-language public television on Tuesday evening that since she had worked in the financial sector for 15 years, she continued to follow the markets closely and had made the purchase because the dollar was “at a record low and was almost ridiculously cheap”.

She said the purchase had been declared to the bank the next day, and it had made no objection.

An internal inquiry by the SNB last month said she had not infringed internal rules.

Kashya Hildebrand owns an art gallery in Zurich. She told the television that 70 to 80 per cent of the gallery’s transactions were conducted in dollars.

Blocher has made it known through his spokesman that he did not wish to comment. He has repeatedly criticised Hildebrand in the past for his policies as SNB chairman.


On Wednesday, however, Weltwoche, a Swiss political weekly close to the People’s Party, claimed it was actually Philipp Hildebrand who conducted the currency deals.

The Zurich-based magazine said it had obtained bank statements showing that he was the one who had bought large amounts of dollars before selling them at a profit.

“We have all the bank statements showing the relevant transactions, plus a verbal assurance from a bank employee confirming that it was Hildebrand personally – not his wife – who ordered the transactions,” Weltwoche Deputy Editor-in-Chief Philipp Gut told the Associated Press in a telephone interview on Wednesday.

According to Weltwoche, Hildebrand made several large dollar transactions between March and October last year. The magazine also alleged that in two transactions dated August 15, Hildebrand bought more than half a million dollars which he then resold in September – making a profit of SFr75,000.

“It’s a classic forex [foreign exchange] speculation,” Gut said. “The only option for Mr Hildebrand is to step down.”

The SNB has defended Hildebrand. On Wednesday it published its internal regulations on individual trading for board members, as well as a report from its auditors at PriceWaterhouseCoopers (PWC).

“The report from PWC shows that recent media accounts of the Hildebrand family’s transactions are partly incorrect and do not include information that the auditors would not have known”, said the central bank, which also announced that Hildebrand would give a press conference on Thursday.

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swissinfo is an enterprise of the Swiss Broadcasting Corporation (SBC). Its role is to inform Swiss living abroad about events in their homeland and to raise awareness of Switzerland in other countries. swissinfo achieves this through its nine-language internet news and information platform.

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