Mass Leak of Client Data Rattles Swiss Banking

HSBC officials allege that Hervé Falciani copied thousands of files of wealthy clients of its Swiss private-banking arm. Swiss authorities are investigating whether Mr. Falciani stole bank records and violated banking secrecy laws.

Mr. Falciani and another HSBC employee - Georgina Mikhael - offered the data to governments and other banks in Europe and the Middle East, according to people familiar with the investigation. It is alleged that he and Ms. Mikhael set up a virtual company, with Mr. Falciani using an alias.

Mr. Falciani admits being in possession of the data and confirms contacting governments about it. But he and Ms. Mikhael both deny breaking any Swiss banking secrecy laws. The emails sent regarding the data didn't ask for money. He says his goal wasn't to profit from the data, but rather to expose secrecy in banking practices.

"I am not a Robin Hood, I'm not a mercenary," Mr. Falciani said in an interview. "I acted like a citizen."

Whatever the case, his leaking of client's data rocked the Swiss banking world!

More details of this fascinating story may be found in the Wall Street Journal.