Swiss National Bank chairman Philipp Hildebrand has denied any wrongdoing over private currency deals that produced profits for his family.
He said he had no plans to resign and accused opponents of trying to exploit false allegations for political ends.
Breaking his silence to counter a national uproar on Thursday, Hildebrand said had acted according to the central bank’s internal rules in the United States dollar swaps, which came as he was spearheading efforts to lower the value of the Swiss franc.
I am not aware of having committed any legal error,” Hildebrand told reporters at the SNB’s headquarters in Zurich.
But I understand that the public is also asking moral questions.”
Hildebrand said the only charge he would level against himself is that he failed to reverse the August 15 dollar purchase made by his wife.
Asked why he didn’t do so, he responded: “Let’s just say my wife has a strong personality.”
He added that transparency rules over financial transactions by members of the SNB had to be improved.
Hildebrand also called for an end to an ongoing controversy to avoid hampering the reputation of the central bank.
Legal steps
The 48-year-old has come under pressure to reveal all details of the dollar deals and avert harm to Switzerland’s small but powerful central bank.
Hildebrand said he understood that the dollar deals some of which he said were conducted by his wife could be misinterpreted and damage his reputation. But he insisted that he would stay on as president.
Resignation is not an issue for me as long as I have the confidence of the board and of the Swiss government,” he said.
Hildebrand lashed out at those who had revealed the dollars deals by leaking details of his private account at Bank Sarasin. The Basel-based bank said it has fired an IT support employee who handed the files to a lawyer close to the rightwing Swiss People’s Party. A criminal investigation is underway.
Hildebrand said he would consult with his lawyer on whether to take legal steps against those involved in leaking his files.
Rock star of euro crisis
The public furor over Hildebrand’s private deals marks a rare misstep for the former champion swimmer. As recently as last week, one Swiss newspaper described him as the „rock star of the euro crisis“ for keeping a cool head while Switzerland’s neighbors trembled amid the turmoil affecting the euro currency.
It was Hildebrand who led the Swiss National Bank’s efforts to vent steam out of Switzerland’s overheating currency by setting the minimum value of the euro at SFr1.20 on September 6.
When details of Hildebrand’s account at Bank Sarasin surfaced late last year, the Swiss central bank declared that its chief had done no wrong and closed the case.
But the recent drip-drip of claims some of them pitting Hildebrand’s word against those of a magazine hostile to his leadership of the bank reignited debate over the future of Switzerland’s top banker.
Blocher
Much of Hildebrand’s defense rests on his claim that it was his wife Kashya, a former currency trader now running an art gallery in Zurich, who bought more than half a million US dollars on August 15 without telling her husband.
Kashya Hildebrand, a Pakistan-born US citizen, told Swiss public television that she invested in the dollar “because it was at a record low and almost laughably cheap.”
Hildebrand told reporters that his wife wasn’t aware that the central bank would two days later increase the liquidity of the franc, thereby lifting the value of the dollar.
Critics say the central bank chief and his wife acted at best naively.
The People’s Party strongman, Christoph Blocher, known for his opposition to Hildebrand’s monetary policy, announced he would give a news conference on Friday.
Blocher reportedly held several meetings with Swiss president, Micheline Calmy-Rey, presenting her the Sarasin bank documents.
His party has called for the resignation of Hildebrand and called for a parliamentary investigation.
On August 15, 2011, SFr500,000 would have bought $642,211.
At midday on September 6, the day the SNB announced the minimum franc-euro exchange rate, $642,211 would have bought SFr505,497.
The following day, after the announcement, the same amount would have bought SFr528,951.
The franc value climbed during the month. At its highest point on October 10 $642,211 would have bought SFr595,169.