Introduction

Switzerland was once one of the poorest countries in Europe because it had generally infertile agricultural land and neither mineral resources nor access to the sea. It was only during the first decade of the twentieth century that Switzerland founded its central bank and created the Swiss franc. Switzerland’s stable monetary environment, functioning financial system, and an economy unharmed by wars allowed it to become one of the world’s wealthiest and most prosperous countries. Significant legislative, regulatory, and operational improvements aided the transformation. Unfortunately, this increasing strength encouraged certain Swiss banks’ adoption of Wall Street’s casino mentality, resulting in substantial Swiss bank losses. A wave of new regulations ensued, sacrificing financial freedoms that were once hallmarks of Switzerland’s financial, social, and economic systems.