Private Banking

Private Bank Wealth Management

‘Private Banking’ Articles

Private Banking Industry, Private Banking Investment, Banking Services

End of the Swiss Banking Tax Haven

Is this the end of the Swiss Banking Tax Haven?

Swiss Bank in Berne

The term Tax Haven over the past several decades has come to mean sheltering your income from the taxes of the country in which you live. But, there is a caveat where the cash is not actually in your hands, but in the hands of another entity or jursdiction.

This was once the domain and playground of the super wealthy. But as years went by, more players got invovlved and many other small countries also started playing the game. The tax hungry countries from the overtaxed citizens also decided to get into the game. What was forseen was a total erosion of the tax base. And that’s the result of the very harsh and threatening G20 with the OECD spear heading the assault on all these tax havens. Recently, even the giant financial centres have become targets and have been forced to knuckle under the big bully might of the G20.

The biggest bust of all to force the Swiss to back off on their sovereign banking secrecy came when busted UBS in the US. Now, with the new tax treaty, U.S. tax authorities will be able to request information on Americans suspected of concealing Swiss bank accounts, the Swiss Finance Ministry said.

The treaty forbids so-called ‘fishing expeditions,’ meaning U.S. authorities have to provide specific details on the person they are seeking further information about and can’t simply ask for wholesale lists of Americans with Swiss accounts, the ministry said.

Since March, Switzerland has signed 11 tax information exchange agreements, one short of the number required by OECD for it to be removed from a ‘gray list’ of uncooperative tax havens.

Here are what have been happening related to the Swiss UBS fallout.

* Switzerland has also signed agreements with Denmark, Luxembourg, France, Norway, Austria, Britain, Mexico, Finland, Faeroe Islands and Spain and the government has authorized the signing of a 12th with Qatar…according to the OECD guidelines…read more.

* Robert McKenzie says one of his clients told him he forgot he had $32 million stashed in a foreign bank account. While it may seem preposterous to lose track of that much money, the client is now coming forward to declare the cash to the Internal Revenue Service…read more.

* Chen (the former Taiwanese President)was sentenced to life in prison by the Taipei District Court earlier this month after being found guilty of embezzling $3.15 million during his 2000-08 presidency from a special presidential fund, receiving bribes worth at least $9 million, and laundering some of the money through Swiss bank accounts…read more.

* Toronto — Thirty-six Canadian clients of Swiss bank UBS have come forward to disclose unpaid taxes, and investigations so far have found $7-million in unreported income, the Canada Revenue Agency said Thursday. The voluntary disclosures follow a high-profile investigation of UBS in the United States, where the bank admitted to using Switzerland’s bank secrecy laws to help wealthy Americans evade taxes…read more.

Really the End of Tax Havens?

Is this the total meltdown of tax havens and offshore banking? The tax haven as being practiced for decades is dead…that’s true. But I for one am of the opinion that it has just morphed to become a very different animal. There will be geniuses of finance who will always find ways around such issues. So, perhaps instead of tax havens, perhaps they will be called offshore banking and private banking wealth management instead.

Technorati Tags: Offshore Banking, Swiss Banking Tax Haven

Banks are primarily a preserver of wealth.

Banks are primarily a preserver of wealth.

Banks Preserve Wealth And I make no bones now, telling you the saver, that the bank should really be used primarily as a preserver of wealth. Not a builder of your portfolio. Generally, banks are not primarily set up as a wealth creator. And I’ll tell you why.

The industry is based on a series of investible products, but it requires huge numbers of participants. It requires the herd mentality of savers to want to invest to agree to buy those products, in sufficient quantity for the market in those products to remain liquid.

So, if you try to game the market by yourself, you stand a great chance of losing it all. You then want to rely on the best expertise you can find. Unfortunately, you are familiar with your own bank but the banks are not the actual expertise who are actually investing your money – you are! So you simply use your bank simply because you are familiar with them. But really, you have a certain amount of money only when you have it in a safe product like Government bonds or savings accounts (make sure the savings are kept below the FDIC threshold to be insured).

Time to dispel the Banking and even the now fashionable Private Banking as great places to invest.

What’s been “sold” to the public private banking industry wide, is that you are building wealth when you save and “invest” your money in a variety of investment products that your bank offers you. These are all based on the offers of the financial industry as a whole.

But first, let me make it clear that there are some private banks of long standing that are truly excellent managers of your investment.It is the tradition on which they have been built. Those that I have concerns with are the newly created ones which are simple taking advantage of the market flux of cash worldwide looking for a home. Also, the problems of the so called “offshore banking” demise has many people seeking other private banking services closer to home. But perhaps the biggest target of all are the people who have been disenfranchised with the market conditions and are simply looking for a higher standard of service than regular banks can offer.

I have had great experience with the traditional and long standing private banking but the new ones are really there to capture market share. But I can really say that the standards adhered to b the newly created private banking industry )mostly from the large retail banks) are most certainly not what I would consider acceptable. But private banking carries the connotation of far more secure and a higher standard of service. Customers will pay more for that percieved better service. What a way to raise more service fees.

And how do they do the banks have such a market?

Very simple – you’ve complained bitterly about for long enough. The savings accounts (and nearly all checking accounts) get such a tiny interest return you wonder why you can’t build wealth. It’ll take a hundred fifty years just to double your money in many cases. And you know the result on inflation on your money. It is this source of cash that you are being forced to invest to get higher returns. Lo and behold! The bank magically has many variable products to cater t0 the investor – YOU.

Why do they offer you investments outside of their bank?

- It immediately moves your money from their responsibility of paying FDIC or banking insurance where the government guarantees your money up to a certain amount.

- The bank immediately becomes the “manager” of your money invested. They can then earn a percentage of the transaction. Remember, they only need to make a very tiny amount of hundreds of millions to make several million dollars.

- If you lose money, it is your responsibility – remember the fine print waiver you signed? If you make money the bank make claims of their own great performance.

Now you understand why the bank officers are constantly offering you something to invest in for your RRSP, RESP, Mutual Funds, Government T-bills and Bonds…

The Bank two step to avoid recriminations when the market tanks.

It all seem to go very well for those that invest in the mutual funds for some years until the big crash comes and set you off on a panicky “What do I do Now?” You ask your bank officer who tells you to hang in there as this is only a market correction. Some people have actually lost the major portion of their investment. Now, if this bank officer was a stock broking company or fund managers as they are now called, there would have been great hue and cry and investigations of mismangement will ensue. The banks seem immune to such reparations only because they do not claim to invest your funds for you but through a third party. Therefore, the parties that are primarily named are you and the investment fund company.

Bankers also know that people will seek banking for their daily financial needs and there fore will become prime targets for investment products repeatedly. So, people with some saved up cash will start to look for higher returns than in their savings and even in the Gov. T-bills and Bonds and may look to their bank officer again and still buy into the insanity of doing it over and over again.

Do better with the real thing

You do far better to research your options well. Put your money in the right places which offer you the right services for your money. To save, use a proper savings account. To invest, invest with the services of true exerienced investment specialists, to have great money managers, use the right organization like a true and traditional private bank. You’ll be far more satisfied with what you will get in return.

Technorati Tags: Banks Preserve Wealth

Tags: Banks Preserve Wealth
Posted in Featured, Private Banking | 1 Comment »

Savings Security in Banks

Are your bank savings safe?

Mention savings security in banks and you are likely to have visions of a heavy steel vault amid tight security. This is a picture that has been ingrained into your memory since childhood – a picture of safety and security. But how secure is your money that you’ve deposited in the bank?

Let’s go through what can hurt your money quickly and you make your own judgement and due diligence.

1) Deposit Insurance. There is always a limit to the amount of money you can put into a bank that is secured by the country’s Bank Deposit Insurance system. If you have exceeded the technical amount, and the bank goes under, you could be out of luck for the balance. And there is always a danger that you may not be covered too…read more.

2) Inflation that eats away at your money. The value of your savings + interest – taxes; will likely mean you are not getting ahead of the value of money you had put into the bank after a number of years…read more.

3) Online Security. Thieves no longer need to get into the vault to get your money anymore. Did you realize that most of the “money” is only a statement on a computer? Much of the banks’ deposits is not cash at all. Therefore the strongest security will be required on the internet, not in that super steel vault – which are really just smoke and mirrors in many cases. Giant vaults are for storing valuables these days.

4) Invested cash exposed to market forces. Are your investments properly spread out or are they only in one place – all the eggs in one basket? Also, always spread all your money in various places. For example, buy a number of smaller homes rather than a big one…read more.

5) Banks will always raise fees on you to make more money. Check that your charges like ATM or service charges are understandable and in keeping with what you had expected. If not, raise hell. Ask if they have other paskages more suited to your use…read more.

6) Keep your profit hat on. Continue to monitor your savings and your attached investments closely. It’s surprising what profit opportunities you can find if you do. Likewise, you can find that something going amiss with your investments too…read more.

7) Bank being a jerk? MOVE! Be prepared to move your account to another bank if you or your money is not being well treated. You might consider using private banking instead of the retail banking. This will abode well for any future financial emergencies…read more.

Technorati Tags: Savings Security

Tags: Savings Security
Posted in Banking, Private Banking, Savings Security | No Comments »

Real Estate is Hot in Chile

Real Estate is still hot in…Chile.

Maipo Valley, Chile - wine country Where? No, not the spicy food. The country on the South Pacific coast in South America. It appears this is a gem of a country with special and popular destinations.

More specifically these are the specialty resort areas in Chile. The relaxation of bank loans and interest rates have helped restore some interest in the real estate market again, after the large fall in values recently.

Maipo Canyon is a prime international real estate destination. The Maipo River Valley in the Andean Mountains is a favourite weekender resort for the residents of Santiago, Chile’s capital about a 50 minute drive away. For example, a luxury and self sufficient 3 bedroom wooden house, built by craftsmen, with its own spring water supply, view of the Andes Mountains and River on 3 acres sells for $630,000. And oh, yes, this is wine country.

How about Vina del Mar, a Meditteranean feel ocean-side resort style town about 2 hours away from Santiago.

Property prices have retracted by about 40% said Rodrigo Orlandi of FAF International in Santiago. But judging from the interest from international buyers, these areas are very much in demand now. The interest rate cuts is in part creating a leveling off of prices.

Charles Spencer from Spencer Global Consulting notes similarly. He represents international buyers and advices them on their real estate purchases; noting that most of the buyers are international executives working and living in Santiago’s multi-national companies.

A few years ago, an apartment with an ocean view in Viña del Mar would have cost 80 million to 100 million pesos ($148,000 to $185,000). Now, some apartments sell for as little as 50 million pesos ($93,000), while houses in the area cost 70 million to 100 million pesos ($130,000 to $185,000).

Read more from the New York Times Real Estate.

Technorati Tags: Real Estate

Tags: Real Estate
Posted in Chile Real Estate, Featured | 2 Comments »

Private Banking Thoughts

Private Banking Thoughts

Private Banking Thoughts to muse over. Do you get what bankers should be offering you and taking care of their clients – YOU?

Private Banking toughts – Time to get your dues – financially, and with great service too! (Have your cake and eat it).

Private Banking thoughts – bank connections – a Bently at wholesale anyone?

Private Banking thoughts – banker called to offer you a plan from associates for a great phone plan – saves over 75% – well yeah!

Private Banking thoughts – well, you’re cordially invited to a bash at the local golf club – come meet some great business people.

Private Banking thoughts – your banker just called to give you some baseball game tickets…yeah right.

Private Banking thoughts – does your banker ever call you about a great vacation deal they just got wind of?

Private Banking toughts – hmm…does your bank ever move funds to a higher paying interest/income investment automatically?

Private Banking thoughts – did your bank ever repay your overcharge because they goofed on your mortgage to another company?

Private Banking thoughts – when was the last time your bank refunded you for an overcharge willingly?

Technorati Tags: Private Banking Thoughts

Tags: Private Banking Thoughts
Posted in Private Banking | 2 Comments »

UBS Today

UBS today is alot different than just a year ago.

ubs At the centre of what some might call the Private Banking Wealth Management storm beginning in the USA (read more), being publicly disgraced with their directors being removed and then requiring the defence and bailout by the Swiss Government. Often seen as the reason Swiss Banking law has been compromised and worse, Swiss Sovereignty compromised leading up to the recent G20 summit in London.

But how are they faring today? They appear to be picking up the pieces but seriously defending their talent base as many top UBS executives have left for greener pastures. Their Asian opeartions seem to have stabilized after shedding thousands of jobs in wealth management.

As expected, they’re still in the red but not bleeding red ink like the years before and appear to be raising some salaries in key operating areas and in some cases, actually hiring – but these are more the exception rather than the rule.

US Real Estate Expected to Fall Another 14.5%

The US Real Estate is expected to roll back another 14.5%.

real-estate

Should you invest in real estate? In fact, should you invest anywhere in the world right now?

Despite the bailout of American Banks by the Obama Administration, it is feared that may not be enough says Yale Proffessor Of Economics Robert Shuller.

When the “Market” predicts the real estate prices will still retract almost 15%, what would the regular real estate investor or would be real estate buyer do? Personally, I’d stay back and ride it out. Why risk my good credit and hard earned money? In the absence of positive new economic news, the general market remains lagging. Potential buyers and investors will likely simply hold back country wide based on such predictions. Here we have the makings of a self fulfilling prophesy. Read more from Tim Middleton…

Now, on the question of should investors in other countries invest at all.

Let’s take Canada for instance. Canada, just across the border from the real estate carnage of the past 2 years have not been as devastated. But then comes news that Canadians in general are declaring bankruptcy in record numbers. Add to the downbeat American outlook and you bet some people will hold back.

The Toronto Spring market was encouraging but what about the rest of the year and for that matter, the rest of the country? I doubt this actually reflects the sentiment for much of Canada. So we may have that oh, so familiar two tier real estate market. The smaller towns, cities and outlying areas away from the large populaton centres will have a fall in price but the big cities will still enjoy a relatively stable market.

What about in other financial centres?

Past tradition follows the US outlook in real estate and the stock market performance. And in Singapore and Hong Kong investors remain jittery. Prices tending to fall more quickly than they rise. However, what is curious is investors tend to favour stocks and investible paper largely for their liquidity as opposed to low interest rate mortgages and getting tied in for the long term.

Technorati Tags: Real Estate

Tags: Real Estate
Posted in Featured, Real Estate, Real Estate Slowdown World Wide | 1 Comment »

Banks Upset: Governments Take Credit Card Action

Banks are notibly upset that governments in first the USA and then Canada announced more restrictive action on the banks’ credit card business.

In the US, the days of credit card practices of raising fees and interest rates practically without limit and notice to customers are numbered. In fact, action is to take place very swiftly.

* The President is expected to sign the final draft – passed dignificantly in favour, 90 -5 in the Senate into law. In fact what is expected is that if the last credit card bank that blinks will lose.

*The cap significantly restricts some practises where rates with fees can amount to astronomical borrowing costs when consumers are least able to afford it.

Similarly in Canada following the US lead, announcements were made yesterday by Finance Minister Jim Flaherty to curtail unfair credit card practices, albeit in a much softer way and depending upon the banks’ good business practices. It seems to be left up to the banks to implement the new rules from Ottawa. Firm dates have not been submitted as yet.

* What seems mandatory is the 21 day grace period for purchases to be restored which was once the norm;

* the statements being made more easily understood;

* and clarity to when the balance will be paid off under the current interest rates.

* But customers will be dismayed to learn that there is no interest rates cap announced – again this is left up to the banks.

Voters’ Influence

There is a shared commonality in both countries that comes from the voters’ pockets. It hits home – very close to home. The US congressional elections will begin next year and the Canadian minority government is walking a tightrope of uncertainty, hoping to win voters’ confidence. But is this alone enough to satisfy consumers?

The credit card has become a part of the North American bugetary structure. Have the fees and interest rates been curtailed enough to forestall more bankruptcies which is now approaching record numbers? Will the consumers aka voters accept that this is enough?

Banks are Upset

Banks are warning that there are too many defaulting customers to maintain very much lower rates. They feel this is forced upon them. But is credit card costs are simply spiraling out of control, then perhaps there must be something wrong with the whole system.

In fact, both the banking industry and governments are worried that this can be another shock that the financial industry cannot afford to have. In a sense, the government action is in part to bolster consumer confidence as well as to rescue what is viable in the credit card industry.

Widely acknowledged that this is a worldwide problem, the Bank of America is raising its alert level for credit card fraud. A sign of the times to come perhaps?

Perhaps, such activities can help turn the tide of costs against the bona fide customers.

Technorati Tags: Banks Upset

Tags: Banks Upset
Posted in Banking Services, Credit Cards, Headline | 2 Comments »

Is USA the Credit Card Consumer’s Saviour?

Could the passing of the new law controlling US Credit Card charges be good for consumers worldwide?

credit-cards For the good, the bad or the ugly, financial trends tend to follow the USA for the past, oh, perhaps half a century; maybe less. The world is still stinging from all that sub-prime fiscal impropriety; then the mother of all financial crashes worldwide (thus far) and is there more to come?

There is a possible crisis coming at banks again. The spectre of rising unemployment will create the expected rise in credit card defaults has the world worried. But the sqeezing of consumers by banks who are now being gouged by rising costs and sudden increases in credit card fees and APRs have consumers worldwide up in arms. There has been enough pain that politicians are actively clamping down on banks’ credit card practices.

Bank executives and some analysts have been warning the restriction on banks trying to raise more cash will likely cause the another cash crunch. Then I doubt these guys have ever been on the sending end of the credit card bill that keeps rising in costs. Consumer budgets often fly out the window when that happens.

What happens when that same consumer is already walking the tightrope between making the payments and outright default? This is another huge fear – people being pushed into default. The resulting Domino effect can easily be far worse than the banks’ ability to scale down.

Put to a vote, with the sentiments against the banks these days, the people will win – at least win a compromise. There will be no rock bottom credit card rates planned. A proposed cap of 15% APR is apparently not in the cards after all. Instead, 22 or 23% seems to be the acceptable limit.

Whatever the result, this is expected to have strong repercussions around the world especially in countries where the banking crisis has the banks trying to squeeze single penny they can from any source. It will give strength to the argument that the banks will need to bite the bullet some more and the consumers should at least have a fairer shake.

I do not expect either party to like the final result, but this is better than having a crushed banking system or thousands of crushed consumers. This is a calculated middle line that we hope is the right one.

Read about the US Senate restricting credit card practices…

Technorati Tags: Credit Card

Tags: Credit Card
Posted in Banking Services, Credit Cards | 1 Comment »

Credit Card Fallout Next Banking Plague

Is there another Credit Crunch coming for the already battle weary Banks?

broken_egg_wikipedia They need another Credit crisis like the plague.

The Banks are worried. As well they should be if the data on the apparently coming Credit Cards crunch will come true. Imagine if they have a full 20% default on all balances.

Imagine suddenly having to:

* Yank 20% of your division business out.

* Then add the administrative costs.

*Add the inevitable legal costs.

*Add the probable expenses of trying to collect on the defaults.

* Then add to the misery, the spectre of layoffs of their own staff.

[Experts predict that millions of Americans will not be able to pay off their debts, leaving a gaping hole at ailing banks still trying to recover from the housing bust.

The bank stress test results last week, suggested that the nation’s 19 biggest banks could expect nearly $82.4 billion in credit card losses by the end of 2010 under what federal regulators called an adverse economic situation.] New York Times read more…

Technorati Tags: Credit Card Fallout

Tags: Credit Card Fallout
Posted in Bank Crisis, Credit Cards | No Comments »

Page 1 of 10 1 2 3 4 5 » ... Last »

Private Banking

Categories

Interesting Sites

Insider

Archives

‘Private Banking’ Articles

End of the Swiss Banking Tax Haven

Banks are primarily a preserver of wealth.

Savings Security in Banks

Real Estate is Hot in Chile

Private Banking Thoughts

UBS Today

US Real Estate Expected to Fall Another 14.5%

Banks Upset: Governments Take Credit Card Action

Is USA the Credit Card Consumer’s Saviour?

Credit Card Fallout Next Banking Plague

Private Banking

Need a Mortgage in a Hurry? Refinance, Investment, LifeStyle – Over 40 Lenders – Click Here

Categories

Tags

Views

Pages