Swiss Bank Frey Ceases

On October 17, 2013, Swiss Bank Frey & Co. AG announced that it had decided to cease business activities as a bank stemming from "increasingly difficult market conditions, ever-growing regulations and the unsustainable requirements that smaller private banks are required to comply with" related to the tax dispute with the United States. Dr. Markus Frey, Chairman of the Board, stated that "[a]s a result of developments in recent years, circumstances and challenges have presented themselves, especially in Switzerland, that means it no longer makes sense for a small bank to continue its cross-border services." The Bank is reportedly financially healthy and will not be liquidated.

Bank Frey reported in its Annual Report for 2012 that it was under a criminal tax evasion investigation by the Department of Justice, but the Bank was not under indictment. However, Bank Frey's decision to cease banking operations will not end the DOJ's investigation and an indictment is still a