Baer chairman steps aside, to deal with US probe

ZURICH: The chairman of Swiss private bank Julius Baer will head a special committee dealing with a US tax probe after leaving his current role, underlining the pressure Swiss banks are feeling from claims they helped wealthy Americans dodge taxes.

Raymond Baer, a 52-year-old member of the bank’s founding family who has been at the group almost 25 years and served as chairman for nine, will become honorary chairman of the bank as of its next shareholder meeting in April.

As part that new role, he had been elected to chair a special committee overseeing cooperation with US authorities, the bank said yesterday.

Julius Baer is among 11 banks - including Credit Suisse - under investigation by the US Department of Justice.

The indictment of Swiss private bank Wegelin in February has heightened tension among private bankers fearful of being next in the firing line.

In February, Julius Baer said it expected to have to hand over client data and to pay a fine as part of the US probe into wealthy Americans who stashed their money in Swiss banks to avoid paying taxes.

“Raymond J. Baer will continue to support the bank in finding constructive solutions for the past chapters affecting Julius Baer and the banking industry at large,” the bank said.

A spokesman said Baer’s departure from the chairman’s role had been planned for some time, and was not related to his role on the special committee.

The spokesman said the committee was formed when the US issues first surfaced.

He added that the committee would also deal with the bank’s other legacy tax issues in Europe.