China's Central Bank Eliminates Margin T…

19-01-2017 Hits:293 BoomBustBlog Reggie Middleton

China's Central Bank Eliminates Margin Trading of Bitcoin

There have been rumors that the Chinese Central Bank (PBoC - People's Bank of China) would limit or eliminate margin trading in Bitcoin. It is now official, sort of...

Read more

Is Donald Trump Truly Successful or Born…

18-01-2017 Hits:493 BoomBustBlog Reggie Middleton

Is Donald Trump Truly Successful or Born With A Silver Spoon? An Analysis

In social media and mainstream media, I often hear Donald Trump quoted (by himself, and others) as an extremely successful, self-made man. As an entrepreneur for nearly all of my...

Read more

As I Promised, EU Is Colliding Into Prac…

17-01-2017 Hits:870 BoomBustBlog Reggie Middleton

As I Promised, EU Is Colliding Into Practical Confines of NIRP, Bank Hemorrhaging Up Next

Nearly a year ago, I warned subscribers of consequences stemming from the ECB's negative interest rate program. Here's an exceprt from our resarch report titled European Banking Macro Issues for March...

Read more

Is Bitcoin Too Risky? Whenever the Bitco…

12-01-2017 Hits:1517 BoomBustBlog Reggie Middleton

Is Bitcoin Too Risky? Whenever the Bitcoin is Mentioned in Financial Pop Media, Ignorance Ensues

I hate to be the one to break bad news to you, but most of the pop media/mainstream media financial pundits that I hear and see opine on bitcoin have...

Read more

What Happens When Rates Rise While the S…

10-01-2017 Hits:1171 BoomBustBlog Reggie Middleton

What Happens When Rates Rise While the S&P 500 Relies on Cheap Credit To Boost EPS?

So, the stock market, bond market and real estate markets are all at all-time highs. Everything is Awesome! You know better than that. You see, when the bond market wakes...

Read more

Debt Encumbered Oil, Sovereign Soil, Toi…

10-01-2017 Hits:648 BoomBustBlog Reggie Middleton

Debt Encumbered Oil, Sovereign Soil, Toil & Trouble: Can't You Hear Seems Cracking in the OPEC Empire?

@WSJ reports Libya Ramping Up Oil Production, Threatening OPEC (supposed) Plans to lift global oil place by artificially limiting supply. This would be in violation of federal antii-trust laws in the...

Read more

Ten Years Since BoomBustBlog Was 1st Pub…

09-01-2017 Hits:971 BoomBustBlog Reggie Middleton

Ten Years Since BoomBustBlog Was 1st Published & That Initial Research Still Relevant Today

We have looked into insurance companies' performance last month in regards to our bearish real estate thesis. A small comederie of companies are suffering losses and/or declining profits as we've exected....

Read more

The Macro Truth About The Big Bitcoin Po…

07-01-2017 Hits:1148 BoomBustBlog Reggie Middleton

Bitcoin has dropped precipitously, and as is usual, we have the cacophony of instant digital currency pundits cackling about as if they had a clue. This is the inaugural post...

Read more

To Bust or Not To Bust: Are We In A Real…

04-01-2017 Hits:819 BoomBustBlog Reggie Middleton

To Bust or Not To Bust: Are We In A Real Estate Bubble?

Banks are showing thin NIM, yet many of the big banks are able to boast stable if not slightly improving credit metrics. This doesn’t make sense considering the explosive growth...

Read more

What Happens To Real Asset Lending Banks…

03-01-2017 Hits:664 BoomBustBlog Reggie Middleton

What Happens To Real Asset Lending Banks When the Real Funding Rate Appears? We're About to Find Out

During the financial crisis of 2008, money market funds who subjectively agreed to hold their NAV (net asset value) unit prices at $1 “broke the buck”. That is, the unit...

Read more

Stress Test on Banks’ Earnings Facing th…

30-06-2014 Hits:44800 BoomBustBlog Reggie Middleton

Stress Test on Banks’ Earnings Facing the Veritaseum UltraCoin Value Transaction Platform

My last post on the topic of disintermediation during a paradigm shift was Wall Street Should Be First To Invest In Reggie Middleton's UltraCoin, Much Of It Won't Be Here In...

Read more

Introducing the "Unbreakable Promis…

09-06-2014 Hits:39578 BoomBustBlog Reggie Middleton

Introducing the "Unbreakable Promise" As a Method Increasing Efficiencies and Decreasing Risk

Continuing on the margin compression theme originally laid out in Margin Compression Is Coming in the Payment Processing Space As $100 Million Pours Into Startups, I illustrate mathematically how the bit...

Read more

From the NY Times...

When the Swiss bank UBS and federal prosecutors face off in a Florida courtroom on Monday, the focus will be whether UBS must disclose the identities of thousands of its American clients, but much more could be at stake as well.

The dispute, in which the Internal Revenue Service, backed by the Justice Department, is trying to force UBS to hand over the names of 52,000 wealthy American clients suspected of tax evasion, has escalated into a showdown that has frayed relations between Switzerland and the United States, peeled back layers of Swiss banking secrecy and rattled the world’s private banking industry. UBS and the Swiss have intensified their opposition this week, threatening to send more ripples through the global banking system.

Oswald J. Grübel, the chief executive of UBS, sent a memorandum to the bank’s top executives on Thursday saying that turning over the names “would require UBS to violate Swiss criminal law, and we simply cannot comply,” according to a copy of the document.

On Wednesday, the Swiss government said that it would block any move by UBS, Switzerland’s largest bank and a bulwark of the country’s economy, to turn over the names should it be ordered to do so. Such a decision could come as early as Monday by the judge overseeing the case. The country contends that complying with such an order would violate Swiss law.

“If necessary, the blocking order is ready,” Urs Ziswiler, the Swiss ambassador to the United States, said in an interview in New York on Wednesday.

Any such order could imperil the ability of UBS, the world’s largest private bank and a big player in the global credit markets, to operate, as well as potentially subject executives to criminal prosecution, and the bank to sanctions, in Switzerland.

“The I.R.S. summons puts UBS in an untenable position, caught between the laws of two sovereign nations,” UBS said in a statement on Thursday. “Honoring the I.R.S. summons would require UBS to violate Swiss criminal law.”

Further heightening the tension, the judge overseeing the case, Alan S. Gold of Federal District Court in Miami, has ordered prosecutors and the I.R.S. to consult the Obama administration and the State Department and to explain by Sunday how far the government is willing to go if UBS refuses to disclose the names. The judge wants to know whether it would consider seizing assets of UBS in the United States or force it into receivership, a form of bankruptcy with a court-appointed trustee.

Charles Miller, a Justice Department spokesman, declined to comment on Thursday. In February, the I.R.S. sued UBS to compel it to turn over the names, just a day after UBS agreed to pay $780 million to settle criminal accusations that it had defrauded the I.R.S. by allowing wealthy Americans to hide billions of dollars in taxes in secret offshore bank accounts. The bank admitted to wrongdoing.

Since then, the controversy has threatened to lift the veil of Swiss banking secrecy, which has driven a vast wealth-preservation industry that over decades has made Switzerland the world’s largest repository of hidden wealth. If Switzerland caves in on this, it will destroy the Swiss banking business. They are not that competitive in other fields. If the Swiss banking business falters, it puts Switzerland itself in jeopardy since the assets of and liabilities of the industry outstrip the GDP of the actual country. If the US caves, they will be challeneged in other areas as well. Very interesting...

UBS turned over about 250 client names as part of its settlement but has pushed hard to have the civil names case dropped. While the bank has legal avenues to challenge any ruling by Judge Gold, exhausting those options and still refusing to divulge the 52,000 names could subject it to indictment.

The showdown has prompted Swiss ministers and officials to conduct an lobbying campaign in recent weeks in the corridors of the Treasury Department, the Federal Reserve and K Street lobbying firms in Washington.

As part of the campaign, Swiss officials have raised the specter of global financial instability should the civil case continue to be litigated, rather than settled, either before or after the hearing on Monday. Last month, a United States official briefed on the matter said that the Justice Department was considering a settlement.

“It’s ongoing negotiations, and we’re not talking about it,” Mr. Ziswiler, the Swiss ambassador, said. Referring to the 52,000 names, he added: “It’s just a number. We don’t know how many people have actually declared their income correctly.” So, the big question is, who will get sold out, and when? My bet would be those with accounts under $50 million will get fed to the tax dogs... Social stratification, international banking style!

Both Mr. Ziswiler and a UBS spokeswoman, Karina Byrne, said that UBS was not willing to pay a fine to settle the names case in addition to the $780 million settlement. Ms. Byrne added that a plan by UBS to raise $3.5 billion in capital, announced on June 25, had no connection to the names case and would not be used to settle it out of court. Beef???!!!

Referring to a possible settlement, the Swiss minister for economic affairs, Doris Leuthard, who is also vice president, said on Wednesday in an interview in New York that the longer the case lasts, “the bigger the chance that UBS is suffering,” adding “financial instability could be threatened. A big bank with a severe problem will hurt the stability of the financial markets and the global economy, and this is one element that should be considered.”

The case has taken its toll on UBS, whose core businesses also include investment and corporate banking. James Odell, general counsel for UBS’s investment bank in the Americas, said Wednesday in a brief interview that “it’s an overhang that’s best to get rid of.”

URL: http://www.cnbc.com/id/31842253/