While the media extensively comment on the $400m settlement of the Leumi case (e.g. Federal Tax Crime Blog), Inside Paradeplatz is asking what it means for Julius Baer and the Zuercher Kantonalbank (ZKB). During 2008 both banks show above average activity in attracting US black money from UBS. Within a few months their holdings of US assets swelled, to reach approximately $1.8bn for ZKB for example.
The blog says that depending on the calculation of the US Department of Justice (DoJ) a fine of $1bn would not even be surprising for Julius Baer. However, Julius Bear has not made any provisions for its US-related tax dispute.
It is believed that the Basler Kantonalbank has provisioned $100m for the US fine.
In the meantime, both CEO, Boris Collardi and Martin Scholl, seem to be on high pay and bonus.