Swiss National Bank chairman steps down over wife dealing

The chairman of the SNB (Swiss National Bank), Philipp Hildebrand, has resigned with immediate effect – as reported by BBC News. The decision follows news that his wife Kashya purchased $504,000 in August, just three weeks before the SNB intervened and capped the Swiss franc.

Hildebrand told a press conference that he wasn't aware of his wife's transaction at the time, which she made a profit on later. The SNB said just last week that Hildebrand's wife broke no rules through making the currency trades, yet a public outcry has meant that the former chairman's credibility has become questionable.

PricewaterhouseCoopers carried out an investigation on the bank's orders that revealed how Mrs Hildebrand;s purchase on 15 August; she apparently wished to have half of her family's assets in American dollars. Just three weeks later, the central bank stepped in and tried to weaken the franc.
As is well known in the world of finance, Central bank governors are among the planet's great unelected powers – maintaining economic stability, setting interest rates, attempting to curb inflation and bossing banks. Their role is to never consider their own wealth – which is why Hildebrand has been caused such embarrassment by his wife making SFR 75,000 prior to his decision which was made to tame a rise in Switzerland's currency.

Explaining why he resigned at the press conference, Hildebrand stated that the moment any governor is under the impression of not having full credibility is the exact time he must relieve himself of his duties.