"Painful consequences for the banks in Switzerland"

Business quote of the day.

The blunt reaction of the Swiss Bankers Association to the news its government had announced a landmark deal with the US to end a long-running dispute over banks that help US tax evaders.
 
The news comes following increased pressure on Switzerland due to series of corporate scandals. Swiss bank UBS was fined a record £160m   over its handling of the Libor interbank lending rate. And the country's oldest private bank, shut its doors after pleading guilty  in January to helping wealthy Americans avoid tax.
 
The programme requires Swiss banks to agree to pay substantial penalties, ensure complete disclosure of their cross-border activities and provide detailed information on in which US taxpayers have a direct or indirect interest.

Read the full story here.
 

Photograph: Getty Images
Getty
Show Hide image

Lord Sainsbury pulls funding from Progress and other political causes

The longstanding Labour donor will no longer fund party political causes. 

Centrist Labour MPs face a funding gap for their ideas after the longstanding Labour donor Lord Sainsbury announced he will stop financing party political causes.

Sainsbury, who served as a New Labour minister and also donated to the Liberal Democrats, is instead concentrating on charitable causes. 

Lord Sainsbury funded the centrist organisation Progress, dubbed the “original Blairite pressure group”, which was founded in mid Nineties and provided the intellectual underpinnings of New Labour.

The former supermarket boss is understood to still fund Policy Network, an international thinktank headed by New Labour veteran Peter Mandelson.

He has also funded the Remain campaign group Britain Stronger in Europe. The latter reinvented itself as Open Britain after the Leave vote, and has campaigned for a softer Brexit. Its supporters include former Lib Dem leader Nick Clegg and Labour's Chuka Umunna, and it now relies on grassroots funding.

Sainsbury said he wished to “hand the baton on to a new generation of donors” who supported progressive politics. 

Progress director Richard Angell said: “Progress is extremely grateful to Lord Sainsbury for the funding he has provided for over two decades. We always knew it would not last forever.”

The organisation has raised a third of its funding target from other donors, but is now appealing for financial support from Labour supporters. Its aims include “stopping a hard-left take over” of the Labour party and “renewing the ideas of the centre-left”. 

Julia Rampen is the digital news editor of the New Statesman (previously editor of The Staggers, The New Statesman's online rolling politics blog). She has also been deputy editor at Mirror Money Online and has worked as a financial journalist for several trade magazines. 

0800 7318496