Hildebrand Steps Down at SNB

Philipp Hildebrand resigned as head of the Swiss central bank after a currency transaction by his wife dented the credibility of the franc’s chief guardian.

The SNB president, 48, will make a statement on his decision at 3.15 p.m.’’ the bank said in a statement today. “He will also make a number of documents available.”

Pressure on Hildebrand to resign increased after media reported his family may have used insider knowledge to its advantage. While an internal investigation cleared him of wrongdoing, the purchase of $504,000 by his wife in August, three weeks before the SNB imposed a currency cap, was found “sensitive.” Economists at VTB Capital and Swissquote Bank SA said his departure will leave investors testing the franc cap.

“The market will now be questioning whether the credibility of the euro-franc 1.20 floor is in jeopardy,” said Peter Rosenstreich, chief currency analyst at Swissquote in Geneva. “Any serious threat to the floor will be immediately met with an aggressive response.”

The Swiss currency traded at 1.2138 versus the euro at 2:56 p.m. in Zurich. It has remained above 1.20 ever since the central bank introduced the minimum exchange rate on Sept. 6. It was at 95.13 centimes versus the dollar.