Swiss Banks Dump Their American Clients Too

British banks got the ball rolling reacting to Obama's wrong-headed, and potentially very ham-handed, tax-shelter crusading by dumping their American customers. Now the Swiss have joined in. Critics will say that this is good, that tax shelters are shutting down in a controlled process of self-unwinding. This is nonsense of stilts. I doubt even 1% of these cancelled accounts are nefarious tax shelters. The banking choices of normal, law-abiding citizens are likely being severely restricted chasing after this hobgoblin, and the wheels of international banking are marginally gummed up, which reduces economic activity. On a large scale and at the margin, this type of action has an effect on the economy - a bad effect.

UPDATE: This turning into an international legal showdown. Hey, love that smart power!