For the first time in its history, Switzerland is surrounded by countries all sharing the same currency. Even without being a member of the Union, it is affected by this new monetary situation. De facto, our trade with Europe is already taking place in one currency only - the euro - because the parities of the former national currencies have been definitively locked. That means that our foreign trade is less diversified by currencies than earlier and that fluctuations of the SF/euro exchange rate have an even stronger impact on the Swiss economy than the former SF/DM or SF/FF exchange rates. At the same time, a common monetary policy for Europe is likely to lead - over time - to a stronger synchronization of business activity in the EMU member states. This, in turn, means that the impact of the European business cycle on the Swiss economy will become more even and thus also stronger. More than ever, Switzerland’s economic destiny will be linked to that of Europe. Today, Switzerland benefits already from the technical simplification induced by the substitution of ten different currencies by a single one. Monetary unification brings advantages to internationally oriented firms as it simplifies their foreign currency management and their accounting procedures. From the year 2002 onward, when the euro will exist in the form of cash, the single currency will make things even easier for a broad public, not only for the Europeans, but also for every Swiss travelling through the euro-zone.
Michael Held: The evolving first line of defense Keynote address by Mr Michael Held, Executive Vice President of the Legal Group of the Federal Reserve Bank of New York, at the 1LoD Summit, New York City, 17 April 2018. * * * Good morning. It’s an honor to join you at the 1LoD Summit. The views I express today are my own, not necessarily those of the Federal Reserve Bank of New York or the Federal Reserve System.1 I’ve heard it said that being in the risk control business can be, and often is, a thankless task. We get all the blame when something goes wrong, and none of the glory when things go right. So, I want to start my remarks with a word of gratitude to you, my fellow travelers in the world of risk controls. Thank you—not just for the invitation to speak today, but also for the work you perform each day at your firms. The growing sophistication and stature of the first line of defense is, in my view, an unqualified improvement in corporate governance—especially at financial firms. Let’s begin with what you are defending. The credibility and reputation of your colleagues, your employer, and your industry. The trust of your customers and clients. And, perhaps most important, the public interest. From my perspective, you are not just a first line of defense for your organization. You are the first line of defense against significant risks to the financial system. This may sound inflated to some.