Todays resignation must certainly also been seen in light of the following rather unfavourable evidence against Mr Hildebrand. The comment below is from the Bank Sarasin 'client contact report' dated August 15th 2011 and can be read as: Mr. Hildebrand wants me to consider increasing his USD-exposure.

Monday, August 15th 2011

Part of the exact Bank Sarasin customer relationship manager quote:

'instead and in order to benefit from the current low prices, he [editor's note: Hildebrand] wants me to [...] consider increasing his USD-exposure but he would leave it up to his wife Kashya to so decide. Later on I visited Kashya at her office and she was very keen to do this. We evenutally agreed that she e-mails me her wish[...]'

It reminds one of the Bill Clinton affair: "I did not have sexual relations with that woman... "

In this case something along the lines of: "I did not place the order for increasing my USD exposure.."

Did he know the chances were extremely high that the USD-exposure would be increased : Yes (according to the client contact report cited above)

Was it his wife and not he who placed the order ? Yes, it was his wife.

Mr. Hildebrand on Tueday, August 16th 2011 - 07:36

"Dear Felix, [...] We never discussed any dollar purchases yesterday.[...] you are not authorized to execute any currency transactions unless the order comes from me or I confirm it. In other words, when it comes to currency transactions, I need to know and sign off on any trades that Kashya might instruct you on [...]"

* Felix = Private Banker
We = Mr Hildebrand & Felix

 

source: Sarasin 'Client Contact Report' published by the SNB, Mr Hildebrand

##  Comments ##

rajshaman

The best financial regulators all go down at the hands of the banks. PH stood up to the UBS and Credit Suisse and they pushed and pushed. Others, including those on FSB and ECB were more timid and rewarded with promotions. Time for the world of citizens to regain control of the rules governing our society. Switzerland lost a fine civil servant. The Swiss people lost and the banks who are so reckless won. This is a sad day in the world and in that country.

Kim

What a crazy story. Of course Hildebrand had to resign, but so so silly of him or his wife. Hung for a lamb chop.

I don't know what the SNB's rules are, but if, when I was working at a bank, I had contact with the SNB or the Swiss Treasury and I touched the CHF or a Swiss government bond without clearing it first I would have been shot.

I still remember a very senior director of Warburg who spoke to the Canadian's, and bought some CAD because he was buying a house over there as his retirement home - he was held over the coals and humiliated in front of the entire bank.

Maybe things are slacker now (that would be a pity), but the wife of the SNB chief ? Amazing.

The art business thing doesn't stack up unless she is a dealer (ie trading as a principal, eg in the secondary market or taking speculative positions in an arist's new work, and that's more Gagosian than Hildebrand, I suspect). Most galleries trade (effectively) as agents, they just pass the sums through their books.