Mixed reactions were heard in Switzerland on the deposits affair settlement at the weekend. The Swiss government voiced hope that the settlement would reduce tension between Bern and the US, but stressed that it took no part in the negotiations and will not comment on the settlement until it examines it in depth.
President Flavio Cotti said he understands the banks’ motive to reach a settlement because of the difficult situation it had become embroiled in. He said his government is continuing to stick to the policy of a historical investigation, and of the founding of a "Solidarity Fund" to aid the victims of disasters and persecution. However the fund will not grant actual assistance to Holocaust survivors.
In a joint statement, UBS and Credit Suisse explained the settlement by the need to prevent US-imposed sanctions against them, and as a measure to save hefty legal fees. The statement did not contain the banks’ apology for its handling of the affair, which is part of the settlement. On the other hand, the banks again announced their support for the Volker and Bergier committees, which are respectively investigating the deposits affair and the Swiss government’s policy during World War II.
Credit Suisse chairman Reiner Goth said that he was aware that the banks had now to work to explain to the Swiss public their motives for the agreement. He added that there are Swiss people who believe the agreement degrades their country, and weeks will pass before the banks know for sure how public opinion has received the settlement. Goth explained that the settlement stems from business motives, and from the need to preserve the banks’ commercial and image status in the US.
The Swiss Central Bank praised the settlement, and refused to comment on estimates on how it would join it. The bank emphasized that it did not give anyone a mandate to conduct negotiations in its name, and added that it will not comment on settlement details until it studies them.
The Jewish Organizations estimate that the Central Bank - the class action suit against it was annulled as part of the settlement - will pay up to $300 million, the amount of its profits from trading in looted gold with Nazi Germany. Goth voiced expressed hope that the Central Bank would join the settlement, in light of the sums of money it saved as a result of lifting the law suit against it.
Democratic-Radical party leader Franz Steinger said that the means used to reach the settlement - class suits and threats of sanctions - are shady from a legal point of view. Yuli Mauer, the People’s Party leader, sees in the agreement a sign that Switzerland may be blackmailed, and urged to stick to the principle by which the Swiss government and the Central Bank "will not be dragged into the affair."
A public opinion poll published at the weekend determined that 42% of the Swiss people support the settlement, 38% object to it and 20% has still not formed an opinion. Fifty-nine per cent objected to the government contribution, against only 27% which support it. The government contribution involves legislation, which may be depend on a referendum for its approval.
Published by Israel's Business Arena August 16, 1998.