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Swiss Banking Secrecy and the US-Swiss Conflict Over Holocaust Claims New edition [Hardback]

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"This book examines US-Swiss relations in the context of Swiss banking secrecy and Holocaust related claims from World War II until the end of the 1990s. During World War II, Switzerland had been purchasing Reichsbank's gold and safeguarded the assets ofthe victims of Nazi Germany. This deeply impacted US-Swiss relations in the 1990s, and fueled a major conflict over dormant accounts and heirless assets of Holocaust victims. The US pressured Switzerland for Holocaust restitution using economic sanctionsand a negative PR campaign. This culminated in a billion-dollar settlement, a reevaluation of wartime history by the Swiss, and a blow to Switzerland's international image. This book analyzes US policy towards Switzerland as a case of projection of US economic, as opposed to military power"--

This book examines US-Swiss relations in the context of Swiss banking secrecy and Holocaust related claims from World War II until the end of the 1990s. During World War II, Switzerland had been purchasing Reichsbank’s gold and safeguarded the assets of the victims of Nazi Germany. This deeply impacted US-Swiss relations in the 1990s, and fueled a major conflict over dormant accounts and heirless assets of Holocaust victims. The US pressured Switzerland for Holocaust restitution using economic sanctions and a negative PR campaign. This culminated in a billion-dollar settlement, a reevaluation of wartime history by the Swiss, and a blow to Switzerland’s international image. This book analyzes US policy towards Switzerland as a case of projection of US economic, as opposed to military power.



This book examines the conflict between the US and Switzerland in the context of Swiss banking secrecy and Holocaust related claims from World War II until the end of the 1990s. The US pressured Switzerland for Holocaust restitution, eventually resulting in a billion-dollar settlement and causing the Swiss to reevaluate their wartime history.

List of Abbreviations
11(2)
Introduction 13(14)
Chapter 1 Swiss Banking Secrecy: Its Origins, Foundations and Legal Implications
27(50)
1.1 The Swiss Banking System: A Historical and Contemporary Perspective
29(11)
1.1.1 The Historical Foundations of Swiss Banking
29(6)
1.1.2 Overview and Structure of the Contemporary Swiss Banking Sector
35(5)
1.2 The Concept and the Customary and Legal Foundations of Swiss Banking Secrecy
40(12)
1.2.1 Banking Secrecy in the United States
43(2)
1.2.2 Protection of Banking Secrecy in Swiss Law
45(1)
1.2.2.1 Swiss Constitution
45(1)
1.2.2.2 Internal Bank Laws and Code of Conduct
45(1)
1.2.2.3 Cantonal Laws
45(1)
1.2.2.4 Swiss Civil Code and Swiss Code of Obligations
46(1)
1.2.2.5 Swiss Criminal Code
47(1)
1.2.2.6 Federal Act on Banks and Savings Banks (Banking Act) of 1934
48(4)
1.3 Limits of Swiss Banking Secrecy Under Domestic and International Law
52(3)
1.4 The Debate on the Origins of Swiss Banking Secrecy and the Role of the Conflict with the US
55(13)
1.5 Banking Secrecy and the Swiss Public Opinion
68(1)
1.6 The Numbered (Anonymous) Accounts Controversy
69(2)
1.7 Evaluation of the Role of Banking Secrecy in the Rise of the Swiss Financial Center
71(2)
1.8 Conclusions
73(4)
Chapter 2 Swiss Banking During World War II: The First Major Conflict with the United States
77(60)
2.1 The Role of Swiss Banks in Gold Transactions with the Reichsbank
80(3)
2.2 U.S. and Allied Measures to Restrict German Economic and Financial Expansion: The Swiss Connection
83(9)
2.2.1 Swiss Assets in the United States: U.S. Freezing Order, Suspicion and Criticism with Respect to the Conduct of Swiss Banks
83(4)
2.2.2 Blacklisting
87(1)
2.2.3 London Declaration of January 5, 1943
87(1)
2.2.4 Declaration on Gold Purchases of February 22, 1944
88(1)
2.2.5 The Safehaven Program and Bretton Woods Resolution No. VI
89(3)
2.3 Escalation of Pressure: Negotiations and Impositions
92(5)
2.3.1 The Currie Agreement
92(2)
2.3.2 Allied Control Councils Vesting Decree: Public Law No. 5
94(1)
2.3.3 The Puhl Affair
95(2)
2.4 The Washington Accord
97(22)
2.4.1 The Issue of Looted Gold During Washington Negotiations
99(6)
2.4.2 The Provisions of the Washington Accord
105(2)
2.4.3 Fulfillment of the Washington Accord
107(9)
2.4.4 U.S.-Swiss Sentiments in the Aftermath of the Washington Accord
116(3)
2.5 The Evaluation of Swiss Conduct During World War II in the Context of International Law: Legalism versus Morality
119(4)
2.6 The Final Act: The Interhandel Case
123(7)
2.7 Conclusions
130(7)
Chapter 3 The Conflict Over Holocaust-Related Claims in the 1990s
137(88)
3.1 Cold War Era Efforts to Resolve the Issue of Holocaust-Related Claims
140(12)
3.1.1 Overview of Holocaust Compensation Efforts Before 1996
140(4)
3.1.2 Legal Impediments
144(2)
3.1.3 The Role of the Holocaust in the United States
146(1)
3.1.4 Efforts to Setde the Dormant Accounts and Heirless Assets Issue Before the 1990s Conflict
147(5)
3.2 The Development of the Conflict
152(47)
3.2.1 The Initial Stage: Involvement of Jewish Organizations and the U.S. Congress
152(5)
3.2.2 Independent Committee of Eminent Persons-Volcker Commission
157(3)
3.2.3 Class Action Suits
160(6)
3.2.4 The Bergier Commission
166(2)
3.2.5 The Meili Affair
168(2)
3.2.6 Diplomatic Blunders and the Holocaust Fund
170(2)
3.2.7 The Eizenstat Report and the Involvement of the U.S. Government
172(4)
3.2.8 Swiss Reaction to the Eizenstat Report
176(2)
3.2.9 Holocaust Victims' Gold
178(6)
3.2.10 Financial Sanctions
184(7)
3.2.11 The Involvement of the U.S. State Department: Mediation of the Settlement
191(3)
3.2.12 The Settlement
194(2)
3.2.13 The Political Power Game
196(3)
3.3 Holocaust Litigation: Its Distinctive Features and Historical Legacy
199(8)
3.3.1 A Hybrid Legal Framework
200(1)
3.3.2 The United States as Jurisdiction
201(1)
3.3.3 Litigation and Banking Secrecy
201(1)
3.3.4 The Role of the Judge in Class Actions
202(1)
3.3.5 The Historical Legacy of Holocaust Litigation
203(2)
3.3.6 International Legacy
205(2)
3.4 Silent Bystander, Willing Accomplice or Righteous Neutral: The Role of Switzerland During World War II in the Light of the Conflict
207(6)
3.5 The Debate on the Moral Ambiguity and Validity of Holocaust Restitution: How Legitimate Was the Final Outcome of the Conflict?
213(5)
3.6 Conclusions
218(7)
Concluding Remarks 225(12)
Summary 237(2)
Bibliography 239(18)
Index of Names 257
Anna Pruska received her Masters Degree in Finance and Banking from the Warsaw School of Economics, studied Macroeconomics at the Johannes Guttenberg University in Mainz, and pursued her post-graduate studies at the Graduate Institute of International and Development Studies in Geneva, Switzerland. She obtained her PhD in the field of Political Science and Administration at the faculty of International and Political Studies at the Jagiellonian University in Kraków.