UBS and the Warning Signs of Financial Instability
In the period leading up to the 2008 Lehman Brothers crash, several red flags pointed towards a wavering global financial system. One significant indicator emerged from UBS, the world’s largest private bank, thanks to the actions of Stephanie Gibaud, an employee in the bank’s French division. When given orders to delete all company files, Gibaud held her ground, unmasking a large-scale corruption and fraud network tied to UBS and a covert tax evasion scheme.
Retribution for Uncovering Corruption: Stephanie Gibaud’s Story
Despite enduring harassment, ostracization, lawsuits, and threats for over 15 years, Gibaud remains steadfast. The exposure of the corrupt practices at UBS had severe consequences for her, ranging from professional isolation to financial ruin. Despite the adversity, she stood by her decision, continuing to reveal the extent of corruption in the international banking system.
The Unveiling of UBS’s Tax Evasion Scheme
Gibaud’s resistance to delete her files eventually helped identify 38,000 offshore bank accounts holding around $12 billion. Information from her documents suggested that UBS was facilitating massive tax evasion schemes for its American clients, leading to a penalty of $780 million. Swiss banks have long been known as havens for tax evasion, and Gibaud’s defiance spotlighted this widespread issue.
The High Price of Whistleblowing
Gibaud’s life at UBS became unbearable after her refusal to delete her files. She faced harassment, discrimination, and social and professional isolation. Despite the hardships, she continued to protest to UBS management and French regulators. Her actions led to a record fine of $4.9 billion for UBS in 2019. However, unlike in the United States, the French legal system does not compensate whistleblowers, leaving Gibaud financially devastated and blacklisted from the financial sector.
Seeking Recognition and Protection for Whistleblowers
Gibaud is currently battling in the French courts to become the first legally recognized whistleblower. Her fight could potentially pave the way for greater protection and compensation for whistleblowers in France, marking a significant step forward in tackling corruption in the global banking system.
UBS: A Culture of Wealth and Secrecy
As an employee in charge of marketing and communication at UBS, Gibaud worked closely with some of the wealthiest clients of the bank. Her job was to promote the bank’s image and manage VIP events, creating a sense of exclusivity for the clients. However, this culture of wealth and secrecy also facilitated the bank’s questionable practices, setting the stage for the exposure of its tax evasion schemes.
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By: Chris Hedges
Title: Inside the Global Financial System: The Whistleblower’s Account
Sourced From: therealnews.com/she-exposed-one-of-the-worlds-biggest-banks-they-ruined-her-life
Published Date: Fri, 13 Oct 2023 16:47:00 +0000
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