U.S. CAN'T BE NEUTRAL ON SWISS BANKS

When Jake Ogden, a Merrill Lynch broker on Long Island, warned his clients
not to deal with Credit Suisse because secretive Swiss banking laws
"facilitate the finances" of terrorists, he went astray of company policy
and was fired. That's shameful, because Ogden is right.

Unfortunately, even if Merrill Lynch had acted with honor instead of
stupidity and stopped doing business with Swiss banks, another company
would have taken its place. That's why President Bush and Congress must
force Switzerland and every other nation with confidential banking
practices to end them. Any bank that continues to allow mass murderers,
drug dealers and mobsters to stash cash should be barred from doing
business in the United States.

For more than 70 years, Switzerland has provided anonymity to account
holders. A bunch of offshore institutions later got into the secrecy game.
Today, an estimated 26% - 26%! - of the world's assets are hidden in
clandestine accounts.

How much of that dough belongs to savages like Osama Bin Laden and his ilk?
No one knows. Which, of course, is the whole point.

Bin Laden reportedly has tried to obtain nuclear weapons. These are not
sold as Blue-Light Specials at KMart. But they can be bought. From certain
sources. Provided one has the capital. Some of Bin Laden's capital is
thought to be in numbered Swiss accounts.

Hoping to avoid a backlash, Switzerland last week blocked 24 accounts with
suspected links to groups and individuals involved in the Sept. 11 terror
attacks. But it would not name the account holders or the banks. It said
$12 million was involved but offered no evidence. "Trust us," say the
Swiss. Why should we? Trust must be earned.

In the U.S. banking system, a record exists for every money transfer. Not
so in Switzerland and at least 35 other nations that give safe haven to
miscreants and worse, seeking to hide or launder money or avoid paying
taxes. It's estimated that $70 billion in U.S. taxes is evaded annually,
thanks to secret offshore accounts.

Last year, Swiss banks agreed to a $1.25 billion settlement with Holocaust
survivors - but only after American institutions began withdrawing money
from those banks in protest. Now is the time to apply pressure again - this
time to end anonymous banking.

In the letter he sent to clients, Ogden wrote, "I believe that the existing
Swiss banking system, in compliance with the Swiss government, will
continue to facilitate the finances of those who wish to bring terror to
this country and other lands." He ought to send a copy to the White House
and every member of Congress. It might be one way to get the message across.

Until Sept. 11, the U.S. had winked at secret banking systems. No more.
Just as Bush intends to cut off nations that harbor terrorists, he must cut
off banks that harbor terrorists' money.