Bankers Being Bankers; Swiss Being Swiss

      Does the world need another monetary crisis?  Another seminal event in finance that creates panic and makes presidents, prime ministers, and dictators cringe? Not hardly.  But, thanks to Swiss National bank President, Thomas Jordan, we have another round of financial upheaval to deal with.  In the middle of last week, without warning, Mr. Jordan and his SNB announced that SNB would no longer maintain a cap on the value of the Swiss franc versus the Euro.  He will let the franc float and find its own level.  The Swiss banker will no longer buy euros to maintain a cap of E1.20 to 1 franc.
     The reactions were swift and far reaching as other country's central bankers accepted the new market place in foreign exchange trading.   Steep losses began to ricochet around the globe.  Hedge funds, private investment banks, and governments had to absorb these losses.  They were quick to criticize the move as destabilizing; contrary to accepted convention; a trade disruption; and an anti-EU move that can only be a negative as the ECB and its director, Mario Draghi, face a slow down across the continent.
      Mr. Jordan offered little in the way of substance concerning his decision, other than to say it was necessary in light of recent monetary changes.   Swiss businessmen were not supportive of the move, given that half of Swiss production is for export and now will be more expensive for all buyers abroad.
       Given the recent low marks for the banking industry in the Alpine nation, especially those banks that have been relentlessly pursued by the Internal Revenue Service of the USA for aiding individuals to avoid paying taxes, this move underscores the SNB attitude of "We set the course others have to follow".   This attitude is misplaced in today's world and has little benefit to international business and banking.   With computers tracking cross-border transactions better than ever, it seems that the Swiss would be wary of upsetting the system.   Mr. Draghi has not made official comments public but one could assume he does not have kind words for SNB's Mr. Thomas Jordan.  Nor do Mr. Hollande, nor Mrs. Merkel, nor even old "What's His Name" in Russya.