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Swiss to Hand Over 4,450 Account Details to US
Published: Wednesday, 19 Aug 2009 * 9:37 AM ET Text Size By: Reuters
The Swiss government will hand over details of about 4,450 bank accounts to U.S. authorities as part of a deal struck with Washington over UBS, it said on Wednesday.
"In the UBS case, the United States will submit a new treaty request to Switzerland and will withdraw the John Doe summons that demands disclosure of the identity of 52,000 UBS accounts holders," the Swiss government said in a statement.
"In return, Switzerland has undertaken to process a new treaty request, concerning approximately 4,450 accounts, within a year," the Swiss government said.
The deal could help the world's second-largest wealth manager restore its image, which has been battered by the financial crisis and U.S. dispute, and may open the way for the Swiss government to sell its stake in UBS.
Sharon Lorimer
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The lawsuit against UBS, which alleges that it helped U.S. citizens dodge taxes, has strained relations between the U.S. and Switzerland because it challenges the secrecy laws that have long drawn clients to the Alpine nation's banking sector and poses a threat to its wealth management industry.
"No one is expecting a fine or punitive damages, so the impact on UBS shouldn't be too severe," said Cheuvreux analyst Christian Stark. "The more important implications are for the Swiss banking industry."
Published: Wednesday, 19 Aug 2009 * 9:37 AM ET Text Size By: Reuters
The Swiss government will hand over details of about 4,450 bank accounts to U.S. authorities as part of a deal struck with Washington over UBS, it said on Wednesday.
"In the UBS case, the United States will submit a new treaty request to Switzerland and will withdraw the John Doe summons that demands disclosure of the identity of 52,000 UBS accounts holders," the Swiss government said in a statement.
"In return, Switzerland has undertaken to process a new treaty request, concerning approximately 4,450 accounts, within a year," the Swiss government said.
The deal could help the world's second-largest wealth manager restore its image, which has been battered by the financial crisis and U.S. dispute, and may open the way for the Swiss government to sell its stake in UBS.
Sharon Lorimer
--------------------------------------------------------------------------------
The lawsuit against UBS, which alleges that it helped U.S. citizens dodge taxes, has strained relations between the U.S. and Switzerland because it challenges the secrecy laws that have long drawn clients to the Alpine nation's banking sector and poses a threat to its wealth management industry.
"No one is expecting a fine or punitive damages, so the impact on UBS shouldn't be too severe," said Cheuvreux analyst Christian Stark. "The more important implications are for the Swiss banking industry."
