The one thing the hedgies did not expect was that the Swiss would tighten regulations, making it into one of the most “exacting” jurisdictions in the world for money managers, according to the Financial Times. The Swiss government is claiming that it wants to be in line with new EU regulations, but that can't be it. Switzerland has never deigned to even be a part of Europe, and especially not the EU.
So why are they doing it? Here is one clue: "Wealthy individuals would also be stripped of their automatic status as 'qualified investors' permitted to deposit money with hedge funds directly," the FT said.
And here is another: There is anecdotal and press evidence that Swiss citizens are having to leave the country to find apartments and houses to rent or buy, because it is too expensive to live in Switzerland. The hedge fund managers, with their vastly deep pockets, are pricing the Swiss out of the market.
My conclusion is twofold:
1.) Swiss private banking is one of the mainstays of the economy, and these banks have been losing business to hedge funds.
2.) Swiss citizens do not want to live in France or any other second-rate country outside their own borders.
The Swiss government takes care of the Swiss first and foremost. Hedge funds better start looking for another place to hide.