Swiss Bank Chief Resigns Amid Trading Scandal

The chairman of the Swiss National Bank has resigned amid a scandal involving a controversial currency trade made by his wife.

Philipp Hildebrand stood down with immediate effect on Monday.

He has been at the centre of allegations of a conflict of interest following a currency trade made by his wife a month before he imposed a cap to control the rising value of the Swiss Franc.

Kashya Hildebrand, a former hedge fund employee, bought $500,000 (£323,000) in August last year to take advantage of the weakness of the US currency against the Swiss Franc.

She (SNP: ^SHEY - news) made a 15% profit of £51,000 on the transaction.

The value of the Swiss Franc has rocketed as investors seek a safe haven from the crisis in the eurozone.

Mr Hildebrand held a press conference in the Swiss capital of Bern shortly after the announcement.

He said he could not prove that he was unaware of the trade.

"I have come to the conclusion it is not possible to provide conclusive and final evidence that my wife did initiate the transaction without my knowledge," he told reporters.

The Swiss National Bank said it "regretted the decision and the circumstances" that led to Hildebrand to step down as chairman.

Vice chairman Thomas Jordan will take over the post for the time being.

Mr Hildebrand last week rejected calls to step down, saying he only learned of his wife's trade the following day.

He denied claims that he had personally authorised the currency deal.

Bank of England Governor Mervyn King said he was saddened by the departure, describing Mr Hildebrand as "a man of total integrity, extraordinary ability and, most important of all, courage".

The Swiss Franc rose following his resignation.

Daniel Hartmann, an economist at Bantleon Bank, said: "The credibility of a central bank does not depend on one person.

"The exchange rate will be influenced more by other factors, such as the eurozone crisis."