Posted on 07/10/2009 2:20:02 PM PDT by Crazieman
As the war over alleged U.S. tax evaders and Swiss banking secrecy laws heats up, UBS is at risk of losing both its banking license and U.S. assets, says Ken Rubinstein, senior partner at Rubinstein & Rubinstein, and a specialist in areas of estate and tax planning.
This week, the Swiss government said it would seize UBS data in order to prevent the Justice Department from obtaining the identities of 52,000 American account holders.
But Rubinstein doesn't believe that will shield UBS, since the bank earlier this year admitted it send private bankers to the U.S. with the express intent of helping wealthy Americans avoid U.S. taxes. In February, UBS paid a $780 million fine and gave U.S. officials the names and data of 250 individuals.
Reuters reports investors are betting on a "swift out-of-court" settlement -- perhaps ahead of a related civil trial scheduled to start Monday in Miami. But Rubinstein does not believe the U.S. government will settle for a mere fine this time, and will demand a "large disclosure of accounts."
If UBS refuses to comply, the ramifications could be dire for the bank (and its investors) the attorney says, adding the UBS case is part of a broader push by the IRS to uncover secret accounts by American citizens in banks around the world.
(Excerpt) Read more at finance.yahoo.com ...
If the US confiscates UBS property, all US government officials can forget about ever seeing any of they money in their Swiss bank accounts ever again.
If our tax system was so punative people wouldn’t be trying to hide money from the IRS.
“Give us half your income!” Who wouldn’t run from that?
I believe the Swiss will fight this to the bitter end using every means possible.
Their banking system is predicated on secrecy. If the USA breaches it, the system would collapse (and their economy along with it.)
...the Swiss government said it would seize UBS data in order to prevent the Justice Department from obtaining the identities of 52,000 American account holders.Should have gone with Firewire.
In the US, the economy is supported mostly by consumer spending.
In Switzerland, it is supported by BANKING.
The Swiss have been on top of their banking game longer than the US has been around.
I think it’s a game of chicken between the US and Swiss governments, it comes down to who needs who the most. Time will tell.
People should do what their leaders do. Keep their money in Saudi accounts.
I wonder how many high level members of the Administration have Swiss bank accounts? The US had better be careful. There could be some “unintended consequences.”
I hope they do! Go Schwiiiz! I do not think the us govt has the right to mess with switzerland’s system.
No, they won't fight this to the bitter end. They will protest for a while and eventually cave. It's the Swiss way.
Starting to wish I lived in Switzerland. Also required to own a machine gun I believe.
The Swiss will win this fight. After all, they have those kool army knives.
They of course will be exempt, I'm sure.
That might be a good strategy for the Swiss. Release a "few" selected records. Then they probably wouldn't have to release any more. Chris Dodd, Barney Frank, Nancy Pelosi, Timothy Geithner -- are ya listenin'?
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UBS would have tons of depositor business if they stood up to the USA and bailed out of our country. Depositors would know that their accounts are protected in secret. UBS would be well-informed to close up shop here in the United States.
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