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In an exclusive interview with finews.asia, former top diplomat Thomas Borer weighs in on the renewed allegations of Nazi accounts at Credit Suisse. He explains the missteps of past and current bank decision-makers and discusses why the Trump administration could turn out to be a stroke of luck for UBS.

A ghost from the past haunts Zurich's Bahnhofstrasse: a major Swiss bank allegedly maintaining accounts for Nazi criminals during and after World War II; Jewish organizations demanding accountability or reparations; and US senators elevating the matter to a political issue.

The ingredients of this controversy are reminiscent of the late 1990s, when a US class-action lawsuit by Nazi victims over dormant accounts at Swiss banks shook the country’s financial center. In 1998, a settlement was reached between the banks and the plaintiffs.

Unknown Nazi Perpetrators as Clients?

A quarter-century after that settlement, UBS faces similar allegations again. The crux of the matter is that Credit Suisse allegedly maintained previously unknown client relationships with Nazi regime perpetrators around World War II, many of whom fled to Argentina in the 1940s.

Few are as qualified to comment on this as former Swiss ambassador Thomas Borer.

Borer's New Book

As a young diplomat, Borer was appointed by the Swiss government in 1996 as chief of staff of the Task Force on World War II. The task force defended Switzerland’s interests during disputes with Jewish organizations, the US and Israel.

finews.asia reached Ambassador Borer in Asia, where he is finalizing a book about the task force's history, set to be published in a few months.

Mr. Borer, the US Senate Budget Committee recently released a bipartisan interim report on alleged Nazi accounts at the former Credit Suisse...

...It’s a colossal own goal for Credit Suisse. It’s infuriating to me.

Why do you see it as an own goal?

All issues and possible claims regarding dormant accounts or Nazi accounts—before, during, and after World War II—were definitively resolved in a comprehensive settlement on August 12, 1998. Swiss banks agreed to pay $1.25 billion, settling all claims, including potential Nazi account allegations.

«I don’t believe there’s a structured game plan against Switzerland. It’s purely Swiss self-sabotage»

Why is that settlement relevant now?

It protects all Swiss individuals or companies from legally enforceable claims related to the Nazi era, including Credit Suisse, UBS as its legal successor, or any other Swiss bank.

You were chief of staff for the Swiss government’s task force on the country’s financial history during the Nazi era.

Correct. Nazi accounts were thoroughly investigated between 1996 and 1999, with significant personnel and financial resources allocated by the Volcker Committee and the Bergier Commission. The conclusion was that very few Nazis likely held accounts in Switzerland. I find it highly unlikely that these new allegations have much substance.

Read on the next page about the crucial errors by the bank's former and current management, according to Thomas Borer.