Damage control

摘要

Whatever further details emerge about personal trades made by Philipp Hildebrand, ex-president of the Swiss National Bank (snb), who resigned on January 9th, the central bank itself is now under huge pressure to restore its credibility. The 11-person bank council reacted weakly on August 16th when Mr Hildebrand reported a foreign-exchange trade, initiated by his wife on a personal bank account.The council did not immediately investigate whether the transaction breached the snb's code of conduct, and did not order him to reverse it. Only four months later, in December, did the council react to press reports and initiate an inquiry by pwc, the bank's auditor. Even then it chose to overlook concern in the auditor's report that this trade was "awkward". Part of the explanation may be the peculiar Swiss attitude to bank secrecy. The Hildebrands' trading came to light because an employee at his private bank leaked the information. A straw poll this week suggested that a majority of the Swiss public views whistle-blowing as no excuse to breach bank secrecy, and regrets the departure of Mr Hildebrand.