UBS on July 1st 2009
What of UBS today on July 1st 2009?
Several months ago…UBS, the private bank wealth management giant and doyen of Swiss Banking got into extreme hot soup when the US government simply brought it to it’s knees and forcing 300 names to be handed over to the US government for criminal activities. UBS was accused of abbeting American HNWI to escape taxes. Had they contravened Swiss Banking Law then? Read more.
According to the Swiss government, no. However, they brought to a climax the wrath of the G20 summit who were simply handed the biggest chunk of ammunition against the bank secrecy of the World’s greatest financial center, the Swiss Banking System…
Fast forward July 1st 2009…what has transpired?
“It is time for UBS to face the consequences that it has brought upon itself,” said Justice Department tax attorney Stuart Gibson in the 55-page filing. “The United States has proven its case for enforcement.” Justice Gold hearing the case has set a hearing on whether to enforce what are known as “John Doe summonses” used by the Internal Revenue Service to seek information about U.S. taxpayers…
But at the same time a diplomatic and tax treaty between the US and the Swiss is already nearing an agreement. So why this lawsuit…read more.
On the home front, the Swiss government is divesting itself of all UBS holdings.
Swiss Economy Minister Doris Leuthard said she expects the government will be able to sell its 6 billion-franc ($5.6 billion) investment in UBS AG, the country’s largest bank by assets, “relatively fast.”
UBS last week raised about 3.8 billion francs in a share sale to strengthen capital eroded by the biggest losses from the credit crisis of any European Bank. Chief Executive Officer Oswald Gruebel, who announced plans in April to cut 7,500 jobs and save as much as 4 billion francs by the end of next year, has said he aims to wean the bank off government support as quickly as possible…read more.
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[...] just over a year ago have taken monumental hits and required government bailouts. Then came the UBS debacle which drew international attention and the ire of the US governmentand the G20 Summit in [...]