Switzerland Today
Dear Swiss Abroad,
The takeover of Credit Suisse appears to be paying off for UBS. The banking giant reported a 53% rise in profits last year, with shareholders set to receive generous dividends. At the same time, UBS is being confronted in the United States with a dark chapter of history, following the discovery of hundreds of former Credit Suisse accounts alleged to have links to the Nazi regime.
Meanwhile, the tragedy in Crans-Montana continues to weigh on relations between Switzerland and Italy. Tensions are particularly palpable in canton Ticino.
Enjoy your reading,
UBS is facing renewed scrutiny in the US over Credit Suisse, which it officially took over in 2023, and the bank’s possible hidden role in Second World War crimes. The US Senate has identified 890 former Credit Suisse accounts that may have had links to Nazi Germany.
Yesterday, the Senate Judiciary Committee questioned UBS executives. Committee chair Chuck Grassley said the findings suggest that Credit Suisse’s ties to the Nazi regime were more extensive than previously known. According to an investigation, Germany’s wartime SS economic office held an account at the Swiss bank. Credit Suisse is also allegedly connected to a scheme to help Nazis flee to Argentina.
Some of the bank accounts, some of which reportedly stayed open until 2020, were previously unknown. The Senate said they belonged to institutions including the German Foreign Ministry, an arms manufacturer and the German Red Cross. Lawmakers also criticised UBS for failing to fully disclose information requested during investigations dating back to the 1990s.
UBS Americas President Robert Karofsky defended the bank, saying it had cooperated with authorities and was committed to clarifying the matter. He added that financial claims were settled in 1999 as part of a global settlement on dormant assets.
The city of Lausanne has published two reports on its police force, which has been shaken by a series of recent scandals. The findings released on Wednesday confirm the need for reforms, especially to identify and address discriminatory behaviour.
The launch of an anonymous reporting system has resulted in testimonies from around 20 police officers. Their accounts point to problematic attitudes within the force, including discrimination, stereotypes linked to origin or religion, and repeated sexist behaviour across different levels of hierarchy.
A second report highlights organisational shortcomings. Its analysis, which still requires further examination, underlines “the need to strengthen the managerial, social and ethical dimensions of police work”. Restoring public trust in the police is identified as a central challenge.
The Lausanne police force was rocked by several crises last year. These included revelations about WhatsApp groups containing racist and sexist content, which sparked public outrage, and clashes between demonstrators and police after the death of a teenager who fled officers on a scooter.
Parliament’s Audit Delegation has warned that Switzerland is becoming a hub for espionage. It has called for tougher measures by the Swiss federal government and the foreign ministry, according to reports by Tamedia newspapers today.
Under the cover of diplomacy, dozens of employees of foreign embassies are spying in Switzerland, with the knowledge of the Swiss federal authorities. This is the conclusion of the latest annual report by parliament’s business audit delegation, published last Friday. The report warns that Switzerland is becoming an international “hot spot” for foreign spies.
The report notes that in recent years the Swiss Federal Intelligence Service has more frequently recommended rejecting suspicious residence applications. However, the Swiss foreign ministry “fails to follow these recommendations in a significant number of cases”.
The delegation believes that there is “a considerable need for action”. Last year, the supervisory body highlighted problems in the fight against espionage. While cooperation between federal agencies has improved since earlier warnings, it says progress remains insufficient.
The fire at a bar in Crans-Montana, which killed 41 people on New Year’s Eve, continues to fuel political tensions between Switzerland and Italy. In canton Ticino, frustration is particularly strong over alleged political and media exploitation of the tragedy, reports Le Temps.
Sensationalist articles published by some Italian media and the political use of the disaster have sparked a backlash south of the Alps. The handling of the tragedy by Swiss authorities has triggered heated exchanges on television and social media. Lugano city councillor Filippo Lombardi, for example, clashed live on air with a presenter on Italy’s Rete 4, accusing him of spreading misinformation.
In recent days, Ticino parliamentarian Giorgio Fonio filed a criminal complaint against an Italian journalist who wrote to him on Facebook stating: “You are disgraceful, accomplices of murderers.” Radical-Liberal Party lawmaker Alex Farinelli has also described how two Italian journalists camped outside his parents’ home, waiting to photograph and question him.
Swiss People’s Party parliamentarian Piero Marchesi has spoken about his decided to boycott Italian television programmes, which he accuses of turning the tragedy into a spectacle. While he attributes this in part to Italy’s media culture, he also warns of political instrumentalisation: “Giorgia Meloni has understood how sensitive people are to this tragedy and is riding this wave to gain political support.”
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