UBS brings Swiss banking to its knees

It is common knowledge that wealthy clients from across the world maintain numbered accounts or keep money in named accounts that are quite often not declared in their resident countries for tax purposes. US citizens also fall in this list of clients, and according to UBS, about 19,000 American citizens have had accounts at UBS bank alone that were apparently undeclared and hence taxes were not paid (not including accounts with various other banks in Switzerland or other nations). This is a serious crime in US or anywhere. However, this may be the very first time in the history of banking that any country is making serious investigations on an official level on bank accounts with a bank in another nation.

Few weeks ago we noted that UBS senior executive was reported as absconding. No further news on that just yet.

However, besides the Justice Deptt in USA, now the IRS has started a separate investigation in US on accounts at UBS. this does not bode well for its clients many of whom have had accounts at UBS for a very long time.

Excerpt:
The Internal Revenue Service, which is participating in a broad federal investigation into UBS and its offshore private banking services, is widening its scrutiny to include ordinary accounts owned by Americans who work overseas, according to a person briefed on the issue.

I.R.S. Is Said to Broaden UBS Inquiry

On another note, UBS has been weakened dramatically with many of their top performing bankers leaving them. However, according to the latest article in the New York Post, UBS may be planning to sell its US securities arm with over 10,000 advisers to Wachovia!

BANKS' URGE 2 MERGE
UBS, WACHOVIA UNIT DEAL

UBS has certainly brought the entire Swiss banking system to its knees, almost single handedly!