Why Wealthy Americans Love UBS, The Secretive Swiss Banking Giant

UBS Group AG, with over $5 trillion in invested assets, is Switzerland's largest bank. The company has a sprawling international footprint, with over half of its wealth management assets coming from clients in the United States. Experts believe these customers are drawn to strict bank-client laws in Switzerland. In recent decades, scandals have embroiled both UBS and its latest acquisition, Credit Suisse. After regulators quickly approved of the merger, fresh litigation risks have come to light.

Chapters:
00:00 — Introduction
01:16 — Secrecy
03:08 — Mega banks
06:24 — Acquisitions
09:41 — Capital assets

Producer: Carlos Waters
Editor: Emily Sternlicht
Supervising Producer: Lindsey Jacobson
Graphics: Jason Reginato, Andrea Schmitz

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Why Wealthy Americans Love UBS, the Secretive Swiss Banking Giant

[AskMiko]

This video deliberately leaving out that US citizens must report bank accounts in Switzerland to the federal government is interesting. These banks charge clients for the compilation of documents and sending it to US tax agencies. There are specific types accounts they don’t report such as retirement and special investment accts

[jamesturner]

Like other commenters have written, this video is inaccurate. Banking secrecy for foreign depositors in Switzerland is largely a relic of the past. High fees and low returns mean there is little point having a Swiss account unless you need to do Swiss based transactions. Swiss banks largely trade on an idea of superior quality and service but customers largely get a bad deal.

[Raymondjohn]

Several of the biggest market experts have been voicing their opinions on exactly how awful they think the next downturn would be, and how far equities may have to go, as recession draws closer and inflation continues.. well above the Fed's 2% objective. I'm trying to build a portfolio of at least $850k by the time I'm 60. I need suggestions on what investments to make..

[AstaKristjan]

I am really worried about the current bank crisis. If a bank as big as SVB could fail, I fear for a lot more. I know a friend who is running a high-growth startup, and was badly hit by the bank run. I have pulled out more than $340k from my bank. After all, the FDIC covers only up to$250, 000, and the implosion could have bad effect. Looking to invest into the stock market now. Does anyone know how I could go about it?

[nukkun]

The video makes it sound like tax fraud is the main reason US wealth would be deposited in Switzerland today. That may well have been true 10 years ago, but I seriously doubt that's true since the AEOI agreement of 2017. There might be other reasons, like political stability, perceived safety of the Franc, relative lack of corruption, economic competitiveness...?

[Arcwol]

I find it intriguing, yet concerning, how the banks are continually allowed to grow not just in size, but to a scale that deems them 'too big to fail'.

[Redwood]

Small taxes can affect investment decisions such as whether to choose tax-free municipal bonds over taxable bonds or do a Roth IRA conversion. I’ve been sitting on over $745K equity from a home sale and I want to invest on the stock market, how do I achieve this without being taxed twice?

[adamsimmons]

Hey guys, how are you doing with your investments? I know the market has been crazy lately.

[ChLop-zzlq]

Switzerland has now one of the strictest AML regulations in the world and fully reports tax data under fatca and crs. The notion that Switzerland is used for hiding money is at least a decade outdated.

However, UBS being this big and international, it excels at diversifying assets and deals globally, attracting money from people who want to diversify their wealth. Yes, this didn't beat the SP500 in the last decade. But it did in the decades before. And it might again.

[YourFoodBank]

Does that include the corporate executives that run CNBC?

[Failucation]

Terrible video with no mention of FBAR or FATCA. Clearly very little research was done on the hoops Americans have to jump through when keeping money in foreign bank accounts

[rteufjf]

Engaging in an individual option is fair but its performance level can’t generate high dividends. Diversification is the secret to optimal performance, that’s why I have my interest set on options based on projected growth and performance.

[pcaso]

There are better places to hide taxes within US like Delaware and where nothing gets reported.

[ningyen]

When you invest, you're buying a day you don't have to work

[julius]

And no mention of FATCA? Thats really mendacious...

[evoniics]

Swiss franc inflation is around 3%.
One of the reasons why you should have some money in Switzerland.

[jimbojimbo]

UBSs returns are not lower than other countries thats a lie, they are a wealth manager not an asset manager they can still invest in exactly the same thing. Secondly the fees aren’t as high that’s again a lie, UBS with its scale will easily offer better rates than a Raymond James.

[paestum]

And no mention of FATCA whatsoever? Bizarre....

[starvingbymidnight]

I’m really worried about my $10 I have in savings if these banks keeps collapsing 😩

[tigerzero]

Why does a clip of Jean-Claude Trichet stating "we knew Credit Suisse had problems" appear out of nowhere? And why is the british dude's clip pasted onto a fake laptop?