2020 Democratic contender John Delaney (D-MD) discusses how tax policy should be adjusted by increasing the capital gains tax rate in order to tax the wealthy.
Swiss investment bank Credit Suisse will soon be applying negative interest rates to the wealthy, at least when it comes to Swiss francs.
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In what is starting to become a bit of a trend for banks in regards to this issue, Credit Suisse is transferring the cost of negative interest rates to some of its most upscale clientele with this move.
“In line with the approach that has long been followed by other banks, Credit Suisse is now also introducing negative interest rates for clients with very large CHF [Swiss franc] cash holdings. The reason for this is the persistent negative interest rate environment,” Credit Suisse said in a statement to Fox Business on Friday.
According to Credit Suisse, there will be a negative interest rate of -0.75% rate applied to private individuals and corporate clients who have cash holdings of Swiss francs over 2 million. And there will be a negative interest rate of -0.85% rate applied to corporate clients with cash holdings of Swiss francs over 10 million. The charges will begin on November 15th for Credit Suisse’s corporate clients and on the first day of 2020 for private individuals.
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Other banks, like Credit Suisse, have recently begun assessing similar charges on the affluent. Back in July, for example, the Financial Times reported that UBS would soon be applying a negative interest rate of -0.75% to wealthy customers of the bank who deposited more than 2 million Swiss francs.
Negative interest rates can spark a stagnant economy and, as Fox Business reported in a recent article, “five central banks have interest rates set below zero, including Japan, Sweden, Denmark, Switzerland and the European Central Bank.” The U.S. has always featured positive interest rates, but Alan Greenspan warned in September that negative interest rates might spread to America.
