Financial Regulatory Forum

UBS won’t sue its former executives on subprime, U.S. tax

By Emma Thomasson

ZURICH, Dec 15 (Reuters) – UBS AG will not sue its former bosses after risky bets on subprime mortgages and a strategy of helping U.S. clients dodge taxes by hiding money in secret accounts brought the Swiss bank to its knees.

Zurich state prosecutors also said they would not open criminal proceedings against UBS employees as there was no evidence of a breach of Swiss law.

UBS said bringing charges would only draw negative attention as the wealth management group seeks a fresh start to win back trust after massive withdrawals by rich clients.

“The board has decided that years of uncertainty about these matters due to litigation … and related negative attention from such action is not in the interest of UBS, its employees, clients and shareholders,” the group said in a statement.

UBS said the board had decided not to take action after a thorough review, including consultation with external legal experts. It said its new management led by banking veteran Oswald Gruebel had taken “comprehensive and profound measures to ensure that nothing like this should ever happen again.”

U.S. offshore tax amnesty yields big response – IRS

U.S. Internal Revenue Service (IRS) Commissioner Douglas Shulman speaks during an interview with Reuters at his office in Washington October 8, 2009. REUTERS/Hyungwon Kang By Kim Dixon
WASHINGTON, Nov 17 (Reuters) – Some 14,700 rich Americans worried about a U.S. government crackdown on offshore tax cheats came forward to participate in a tax amnesty program, the top U.S. tax official said on Tuesday.


Swiss to hand over US names of wealthy UBS clients

UBS/TAX   By Jason Rhodes
   BERNE, Nov 17 (Reuters) – Switzerland will hand over the names of wealthy U.S. clients of UBS <UBSN.VX> suspected of tax evasion or fraud, to settle a bitter row that cut through bank secrecy and threatened to bring the bank to its knees. (more…)

UBS traders dumped losses on duped rich clients

By Kirstin Ridley
LONDON, Nov 5 (Reuters) – Four former dealers at UBS plundered customer accounts to trade and dumped the resulting losses on them, Britain’s financial regulator said, further denting the battered Swiss bank’s reputation.


Swiss hunt Italian agents as tax row deepens

ROME, Oct 29 (Reuters) – A row between Italy and Switzerland over tax evasion deepened on Thursday with one Swiss region launching a hunt for Italian agents trespassing on its soil as Rome warned against retaliation for its raids on Swiss banks.


U.S. serves tax probe subpoenas in NY area

By Kim Dixon
WASHINGTON, Oct 28 (Reuters) – The U.S. government has served subpoenas on wealthy individuals in recent days in the New York area, targeting those who may have evaded taxes using offshore accounts at Swiss bank UBS AG, lawyers said on Wednesday.


US seeks sentence cut for UBS client in tax case

WASHINGTON, Oct 23 (Reuters) – The U.S. government is seeking a reduced sentence for a former client of UBS AG, who provided substantial information in a probe that found the Swiss bank helped Americans stash money overseas to evade taxes, according to a court filing on Friday.Steven Rubinstein will be the first UBS client to be sentenced in the criminal cases being brought by government lawyers against scores of UBS clients and will face sentencing in the U.S. District Court for the Southern District of Florida next Wednesday.

Rubinstein pleaded guilty to failing to report a UBS account, and deserves a relatively mild sentence because he has “provided substantial assistance” in the UBS probe, the government said.

The U.S. alleged that the accountant, who had worked for a company helping clients buy and sell yachts, evaded taxes on $3 million by stashing funds in a British Virgin Islands corporation set up with a UBS account from 2001 to 2008.

7,500 offshore tax evaders come clean – chief

U.S. Internal Revenue Service (IRS) Commissioner Douglas Shulman speaks during an interview with Reuters at his office in Washington October 8, 2009. To match interview TAX-OFFSHORE/        REUTERS/Hyungwon Kang  (UNITED STATES CRIME LAW BUSINESS POLITICS) WASHINGTON, Oct 14 (Reuters) – Thousands of wealthy Americans have volunteered information about unreported income hidden in overseas accounts ahead of the deadline for a U.S. government tax amnesty program, the U.S. tax commissioner said on Wednesday.


Ex-Boeing manager pleads guilty in UBS tax case

The logo of Swiss bank UBS is seen at the company's office at the Bahnhofstrasse in Zurich July 1, 2009. UBS could still settle a damaging U.S. tax case even though Washington is pushing ahead with a lawsuit to force the Swiss bank giant to identify clients, the Swiss Finance Minister said.   REUTERS/Arnd Wiegmann (SWITZERLAND BUSINESS IMAGES OF THE DAY) By Kim Dixon
WASHINGTON, Oct 5 (Reuters) – A retired sales manager for airplane maker Boeing Co on Monday pleaded guilty to hiding nearly $2 million in Swiss UBS AG accounts, as the United States pursues Americans illegally stashing funds abroad to avoid taxes.


Swiss regulator says UBS, CS pass stress test

A general view shows the Paradeplatz square and the headquarters of Swiss banks UBS and Credit Suisse in Zurich October 23, 2008. Swiss banking heavyweight Credit Suisse said it had further cut its exposure to illiquid U.S. assets as it confirmed its hefty third-quarter loss on Thursday, but warned the rest of the year would be tough.    ZURICH, Oct 2 (Reuters) – Switzerland’s two large banks, UBS and Credit Suisse, could weather a severe deterioration of the economy, Swiss banking regulator FINMA said on Friday, publishing its conclusion from a stress test for the banks. (more…)