Swiss cabinet meets on UBS as U.S. tax talks drag

[Heidi]

Source: Reuters

Mon Aug 10, 2009 5:21am EDT

ZURICH (Reuters) - The Swiss government held a special session on Monday to discuss the U.S. tax evasion case hanging over Swiss bank UBS as negotiations to settle the issue dragged on.

The Swiss government, currently in recess, is holding an extraordinary meeting on Monday, a government official said, without adding details.

Switzerland and the United States failed on Friday to agree on a settlement that would spare UBS a tax trial, and talks will continue until August 12, when a new status conference with U.S. Judge Alan Gold is scheduled.

The case has big implications for the global offshore banking industry and is the sternest ever legal challenge to bank secrecy in Switzerland, whose private banks manage around $2 trillion of foreign wealth.

"My suspicion is that it is not good news. I'm sure there will be a resolution, but whether it will be as beneficial for UBS as the market was hoping is not looking likely," said Helvea analyst Peter Thorne.



Read more: http://www.reuters.com/article/newsOne/idUSTRE57910D20090810

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Earlier related Latest Breaking News thread:
Swiss, US Govts Hammer Out UBS-IRS Pact Details (Fri Jul-31-09)

[Octafish]

1. 52,000 Names and $2 Trillion

Wonder how much of a dent their dodged taxes could make on the deficit, let alone the problems facing the United States?

Lucy Komisar is an excellent resource.

OT: Hi, Heidi! Whatever happened to the $134 billion in "fake" bonds intercepted at Chiasso? That story disappeared through the Memory Hole PDQ.

[Heidi]

2. Hi, you!!!!

There's nothing new on the "fake" bonds. The general concensus among Swiss and Italians I've spoken to about that little situation in Chiasso is that this was a clusterf*ck of major preportions on the part of the Swiss financial cops and the US Secret Service. The two Japanese guys have returned to Japan and it is assumed (among us locals, anyway) that the bonds were completely fake and much fuss was made over the situation -- and they still let counterfeiters get away. :eyes:

There is a wonderful DUer who is native Italian and a friend; I'll send him some links and ask him if he'll post in this thread and give a better understanding of the situation of my own.

P.S. :hug:

http://www.avvenire.it/Economia/Il+giallo+dei+bond+Usa+Solo+carta+straccia+ma+non+ci+sono+prove_200908070926218800000.htm