Dollar allegations
January 6, 2012
The beleaguered head of Switzerland's central bank, Philipp Hildebrand has refused to step down amid claims of improper trading on currency by his family.
Speaking publicly about the affair for the first time, Hildebrand told said he had complied with all of the central bank's regulations and claimed "political motives" were behind allegations of insider trading.
"I acted correctly on every count," he said referring to revelations that his wife Kashya Hildebrand profited after buying $504,000 (394,000 euros) in August last year. The transaction came just weeks before an intervention by the central bank, fueling a rise in the dollar against the Swiss currency.
"Looking back I made mistakes," said Hildebrand, saying that the transaction could have been misinterpreted. "Let's just say my wife has a strong personality," said Hildebrand, when asked why he had failed to persuade her to abandon the deal. "My wife has very strong opinions and is very interested in global financial markets," he said.
Two other deals, the purchase of $1.1 million dollars in March and the sale of $500,000 in October, have also attracted criticism. Hildebrand said he was not prepared to stand down under the current circumstances.
"So long as I have the confidence of the government and the bank council, stepping down is not an issue for me," said Hildebrand, fielding questions in German and French.
Investigation finds no fault
Switzerland's Federal Audit Office carried out an investigation exonerating the couple and the government has given him its backing.
Details of the transaction have been seized upon by the far-right Swiss People's Party (SVP), which has been critical of Hildebrand and the central banks interventions in foreign exchange markets.
"For those close to the central bank chief to be making currency deals is an absolute no-go," Christoph Moergeli, a senior figure in the SVP, told Swiss television. "You shouldn't even need to put that in writing."
Prosecutors in the Swiss canton of Zurich on Thursday said an investigation into a 39-year-old man had begun over the publication of bank data about Hildegard.
Switzerland guards bank client confidentiality jealously, to the degree that must regularly fend off scandals over their role in tax avoidance schemes for wealthy individuals from abroad.
Author: Richard Connor (AFP, AP, Reuters)
Editor: Andreas Illmer