Even the Swiss are joining in the bank bailout game. The two biggest banks, UBS (NYSE:UBS) and Credit Suisse (NYSE:CS), have taken dramatic steps to offload toxic debt and raise working capital. But Bob Bauman says investors shouldn’t worry about the country’s banking system. It is still the place to safeguard your assets from the financial meltdown.

In the latest chapter of government intervention, Switzerland absorbed $60 billion of distressed debt from UBS’s books. The government also took a 9% stake in the bank. Meanwhile, Credit Suisse called upon key shareholders (including the government of Qatar) to raise capital.

But Bob says the only Swiss banks in trouble are those that abandoned their traditional banking principles and “Americanized” their business. Thankfully, the vast majority retain the strict secrecy laws that will protect your privacy.

More from Bob at the Sovereign Society:

While the two leading Swiss banks, UBS and Credit Suisse, expanded their operations into the United States and were burned for their efforts, most Swiss banks remained safe and untouched.

In the second quarter of the year, UBS watched as 43.9 billion Swiss francs (US$39.6 billion) flowed off their books as savvy customers took their assets elsewhere. Thousands transferred their funds to sound cantonal banks and the few remaining legendary Swiss “private” banks.

Patrick Odier – senior associate of private bank Lombard Odier Darier Hentsch – told Swiss newspaper Le Temps Thursday that clients were flocking to private bankers to safeguard their assets.

“The numerous clients who are inquiring currently at our private banks are here seeking refuge, advice and expertise in asset investments,” he said.

But There’s No Banking Crisis in Switzerland

Switzerland is NOT facing a banking crisis. On the contrary, Swiss banks are coping with the global financial crisis, the head of Switzerland’s banking association said on Sunday.

“I am convinced that no Swiss bank will collapse,” Pierre Mirabaud told Swiss newspaper Sonntag. “The Swiss banking system is healthy. The cantonal banks, the regional banks, the private banks – they are all doing very well.”

“Switzerland is better positioned than many other countries. You cannot talk about a banking crisis here. We have more than 320 banks. Only the two big banks are directly affected by the crisis,” he said. But Mirabaud also sounded an upbeat note on UBS and Credit Suisse, saying they were no longer in the eye of the storm.

As Always – Swiss Stands for Safety

Historically, over the centuries, Switzerland has remained the place to safeguard your cash and personal assets, especially in times of trouble. We think that still holds true.

The fact that both UBS and, to a lesser extent, Credit Suisse got into trouble simply proves they abandoned their traditional conservative Swiss banking principles in the race for easy money.

Even in the current crisis, Swiss banks manage one third of all assets the world’s offshore wealth. Total cash assets of the Swiss banking system are estimated at US$2 trillion or more, while the total value of security deposits is well over US$3 trillion. Assets under Swiss management have risen significantly in recent years, reaching a high of US$4 trillion in 2007, according to the Swiss National Bank and the Swiss Bankers Association.

In recent weeks we have assisted Sovereign Society members and A-Letter readers seeking safer banking havens, many of them seeking to open Swiss bank accounts.

Based on our long experience, (we never have recommended UBS and Credit Suisse), we prefer private contacts with sound Swiss banks that have never “Americanized” their businesses. We recommend banks that adhere to the strict Swiss bank secrecy law that protects your financial privacy.

If you need help with Swiss banking, let us hear from you.

Source: Swiss Banks Survive the European Blame Game