Several Swiss financial experts have criticized last week’s settlement between UBS and the U.S government, saying that Switzerland’s banking secrecy is likely to come under pressure from other countries. “There are two winners [from the deal],” Swiss banking expert Hans Geiger said. “UBS and the U.S. Internal Revenue Service Switzerland and our market place have lost. Now it’s clear that Germany and Italy will increase pressure.” UBS and the U.S. government have signed a deal to settle a U.S. tax-evasion probe that had sought the names of 52,000 of the Swiss bank’s U.S. clients. According to MarketWatch, details of the settlement can be expected as early as next week, according to the IRS. Swiss private banker Konrad Hummler, managing partner at private bank Wegelin, said Switzerland’s private banking industry will suffer should UBS hand out client data to the U.S. UBS is expected to hand out between 4,000 to 5,000 client names as part of its settlement deal with the U.S.
UBS-U.S. Deal Will Hurt Swiss Banking
Swiss banking experts say Switzerland’s private banking industry will suffer should UBS hand out client data to the U.S.
August 17, 2009