Five questions answered on the closure of Switzerland’s oldest bank

Weglin pleads guilty to charges.

Swiss bank Wegelin has announced it will close after being hit with a fine from the US authorities. We answer five questions on Wegelin’s closure.

Why is Wegelin closing?

The Swiss bank, which was established 35 years before the US declaration of independence, is closing after pleading guilty to charges brought against it by a New York court which has resulted in the bank being hit with a $57.8m (£36m; 44m euros) fine by the US authorities.

It has announced that once the fine is settled the bank will close permanently.

What charges did Weglin plead guilty to?

The bank pleaded guilty to allowing more than 100 American citizens hide $1.2bn from the Internal Revenue Service for almost 10 years.

Originally, the bank said it would fight the charges, declaring that because it only held branches in Switzerland it could be bound only by Swiss laws.

What is the bank's history?

Weglin was established in 1741 and resides in a small town called St Gallen in Switzerland with further offices in Zurich, Bern, Basel, Geneva, Lausanne, Locarno, Lugano, Chiasso, Schaffhausen, Winterhur, Chur and Lucerne.

It is the first foreign bank to plead guilty to tax evasion in the US.

What have American officials said?

US Attorney Preet Bharara said: "The bank wilfully and aggressively jumped in to fill a void that was left when other Swiss banks abandoned the practice due to pressure from US law enforcement."

Adding: "[This is a] watershed moment in our efforts to hold to account both the individuals and the banks - wherever they may be in the world - who are engaging in unlawful conduct that deprives the US Treasury of billions of dollars of tax revenue".

Are other Swiss banks being accused of the same conduct?

Four years ago UBS was accused by the US authorities of tax evasion related charges. Although UBS never pleaded guilty to the charges it did pay the US government a $780m fine in what is known as a "deferred prosecution agreement" whereby a fine is paid and the charges are then dropped. UBS also agreed to reveal US account holder details.

Credit Suisse, another big Swiss bank, also remains under investigation by the US authorities.

It is unknown whether the US authorities will continue with or drop other charges against three Wegelin bankers, Michael Berlinka, Urs Frei and Roger Keller.

Swiss bank Wegelin has announced it will close. Photograph: Getty Images

Heidi Vella is a features writer for Nridigital.com

Oli Scarff/ Getty
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Andy Burnham's full speech on attack: "Manchester is waking up to the most difficult of dawns"

"We are grieving today, but we are strong."

Following Monday night's terror attack on an Ariana Grande concert at the Manchester Arena, newly elected mayor of the city Andy Burnham, gave a speech outside Manchester Town Hall on Tuesday morning, the full text of which is below: 

After our darkest of nights, Manchester is today waking up to the most difficult of dawns. 

It’s hard to believe what has happened here in the last few hours and to put into words the shock, anger and hurt that we feel today.

These were children, young people and their families that those responsible chose to terrorise and kill.

This was an evil act. Our first thoughts are with the families of those killed and injured. And we will do whatever we can to support them.

We are grieving today, but we are strong. Today it will be business as usual as far as possible in our great city.

I want to thank the hundreds of police, fire and ambulance staff who worked throughout the night in the most difficult circumstances imaginable.

We have had messages of support from cities around the country and across the world, and we want to thank them for that.

But lastly I wanted to thank the people of Manchester. Even in the minute after the attack, they opened their doors to strangers and drove them away from danger.

They gave the best possible immediate response to those who seek to divide us and it will be that spirit of Manchester that will prevail and hold us together.

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