SNB’s governing board transactions being audited

After the fiasco with SNB President Hildebrand, Swiss Govt reacted rather sternly.

It asked KPMG in Jan-12 to review the financial transactions of all the members of SNB Governing Board from 2009-11.

KPMG just released its report recently. It finds all the members are clean:

KPMG concludes that, during the course of the analysis presented in the report, no activities were identified which might suggest that financial transactions by members of the Enlarged Governing Board were in breach of the guidelines and regulations in place during the period under review. None of the transactions by Thomas Jordan, Thomas Moser or Dewet Moser required further analysis. In the case of three board members, KPMG conducted a detailed analysis of a total of six transactions, namely two transactions each by Philipp Hildebrand, Jean-Pierre Danthine and Thomas Wiedmer.

After this fiasco, there will be more checks and perhaps be a  regular feature:

Against the backdrop of the events of the past few weeks, however, the Bank Council has reached the conclusion that the regulations must be made more stringent and monitoring intensified. This is why the Bank Council commissioned a fundamental review of the regulations on own-account transactions in financial instruments by members of the Enlarged Governing Board as early as 7 January 2012. Work is almost completed and the new regulations will be published shortly.

The Bank Council will present its proposal for the appointment of a new Governing Board member to the Federal Council (the body responsible for this decision) within the next few weeks. It hopes that the SNB Governing Board will soon be able to carry out its duties with its full complement of members.

Interesting development in central banking domain…

 

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