UBS vs IRS

UBS says that it is bound by Swiss law to not divulge the names of some 52,000 US Tax Cheats.

http://www.cnbc.com/id/31842253/site/14081545

“Oswald J. Grübel, the chief executive of UBS, sent a memorandum to the bank’s top executives on Thursday saying that turning over the names “would require UBS to violate Swiss criminal law, and we simply cannot comply,” according to a copy of the document.”

The Swiss Government says that it will confiscate the list of names before it allows UBS to turn them over.

So What Do The Swiss Banks Do?
They hire a bunch of lobbyist and start carpet bombing Washington with bribes, er “Campaign Contributions” – the American Way! These Swiss guys learn fast…

They also are threatening the very Stability of the Banking System itself - “financial instability could be threatened. A big bank with a severe problem will hurt the stability of the financial markets and the global economy…” These Swiss learn fast… Maybe they hired Paulson to be a lobbyist.

The Swiss are calling Team Obama’s bluff. Now, the Judge presiding over the case is asking them point blank, how far are they willing to take this?

“Alan Gold, the US district judge presiding over the case, late on Wednesday gave the US government until midday US time on Sunday to clarify whether it might go as far as seizing assets of the bank’s US operations, or forcing them into receivership, should the court rule against UBS and the bank not comply.”

http://www.ft.com/cms/s/0/657c7daa-6c81-11de-a6e6-00144feabdc0.html

It should be a fun (and profitable) weekend on K Street.