Swiss Central Bank Chief Faces Accusations of Improper Currency Trades FRANKFURT - Philipp M. Hildebrand, chairman of Switzerland's central bank and a key architect of tougher global banking regulations, came under intense pressure Wednesday after a Swiss publication reported that he profited from currency trades made before and after he oversaw steps to prevent the Swiss franc from becoming too strong. The report by Weltwoche, a weekly magazine seen as having ties to the rightist Swiss People's Party, reported that in October Mr. Hildebrand made 75,000 francs, or $79,600, from the dollar trades. He had acquired dollars before the Swiss National Bank, the central bank, announced measures in September to check the rise of the franc and protect Swiss exporters, the magazine reported. It cited copies of statements provided by an employee of a private bank where Mr. Hildebrand had an account. Mr. Hildebrand did not immediately respond in detail to the report, but planned to make a statement Thursday. Late last month the council that oversees the central bank said it had examined "rumors" about transactions made by Mr. Hildebrand or members of his family and found no wrongdoing. A report prepared by PricewaterhouseCoopers, released by the S.N.B. Wednesday, said the transactions - amounting to more than $2 million - were made in connection with such family financial transactions as the purchase of real estate. The firm found no violations of central bank rules. The accusations came as a shock in Switzerland and in central banking circles worldwide. Mr. Hildebrand is a familiar and respected figure in his home country, though some of his policy moves have drawn intense criticism. Internationally, Mr. Hildebrand, who spent part of his career at a New York hedge fund, is known for his work drafting regulations, known as Basel III, that would oblige banks worldwide to limit their use of leverage to strengthen risk management. The disclosure of the transactions immediately took on political overtones because of the involvement of the Swiss People's Party in bringing the matter to light. In the past the party, which campaigns on a platform of limiting immigration and keeping Switzerland out of the European Union, has been among Mr. Hildebrand's most vocal critics. "There have been disputes about monetary policy, but so far no one has questioned his integrity," said Daniel Kübler, a professor of political science at the University of Zurich. Noting that Mr. Hildebrand had pushed for more financial disclosure by top officials of the central bank, Mr. Kübler said he found it difficult to believe that the accusations were true. But he added, "If it is confirmed then he must resign." Accountants from PricewaterhouseCoopers who examined records of the transactions said that some were profitable for Mr. Hildebrand but others lost money. The report did not calculate the total profit or loss, but its findings raise the question of why Mr. Hildebrand, who is wealthy, would risk his reputation for relatively little return. Mr. Hildebrand has made enemies at home and abroad by pushing to impose rules on the country's two biggest banks, UBS and Credit Suisse, that were tougher than those in other countries. He has also annoyed his former banker colleagues with his criticism of banker compensation and his advocacy of regulations designed to limit bank risk and prevent future financial crises. The rules have been endorsed by leaders of the Group of 20 largest economies. In Switzerland, one of Mr. Hildebrand's most vocal antagonists has been Christoph Blocher, a businessman who is the best-known figure in the Swiss People's Party. In the past Mr. Blocher has accused the Swiss National Bank of squandering the country's wealth with costly currency interventions and demanded that Mr. Hildebrand resign. The criticism has been muted since the S.N.B. announced in September that it would set a limit on the currency of 1.20 francs to the euro. The policy has been successful in keeping the franc, favored by investors as a haven from global financial turmoil, from rising to levels that would be ruinous for Swiss export companies. Bank Sarasin, an institution in Basel, Switzerland, where Mr. Hildebrand had an account, said Tuesday that one of its employees leaked information about the currency transactions to a lawyer close to the People's Party. The employee, who was not identified, later met with Mr. Blocher, the bank said. The employee has been fired and has turned himself in to the police for violating bank secrecy laws, Bank Sarasin said. The report by PricewaterhouseCoopers found that one transaction was made without Mr. Hildebrand's knowledge by his wife, Kashya, the owner of an art gallery in Zurich.