Update 2 0:30 Update 1 20 August 0:08 Bern, Switzerland (GenevaLunch) – The Swiss government is selling 332.2 million shares in bank UBS, withdrawing “immediately and entirely” its stake in the bank. The announcement was made by Bern after details were published Wednesday 19 August of the Swiss-US out of court settlement in the UBS bank case.
Bern and Zurich, Switzerland (GenevaLunch) – Highlights of the agreement between the US and Switzerland in the UBS out of court settlement, provided by the Swiss government, include (Ed. note: US Department of Justice page on the settlement):
Shares up; Swiss bankers hire US lobbyist
Zurich, Switzerland (GenevaLunch) - It may be no more than rumour based on several unnamed sources being cited, but the financial world is now expecting the Swiss and US governments to sign on Wednesday an agreement involving Swiss bank UBS. The bank’s shares have continued to climb most of this week, reaching the level they were at in December 2008 before the bank agreed to hand some names to the IRS tax authority, in early February. UBS shares closed in Zurich at CHF16.90 Tuesday 19 August.
Once the agreement is signed by both parties, details can be released. Widespread speculation by industry observers and media has UBS delivering some 5,000 clients’ details to the IRS, but the figure could take on a new aspect with the IRS specifying Tuesday 19 August that it is now investigating for criminal activity 150 of the 252 client names provided to it by the bank in February 2009.
UBS New York headquarters
Update 2 Florida, USA; Bern and Zurich, Switzerland (GenevaLunch) – The bell hasn’t yet quite tolled for anyone in the US court case where the IRS is asking for names of UBS bank clients. Judge Alan Gold in Miami late Friday 7 August, Swiss time, gave the two governments another week, until 12 August and at their request, to hammer out details of an out of court settlement.
Reactions were mixed, with the Financial Times reporting that “Friday’s setback caused confusion” for investors, arguing that the “failure” to reach an agreement will hurt UBS shares. Swiss media were more phlegmatic, viewing the delay as an acceptance that a resolution of several technical issues requires more time, which the judge has given.
UBS New York headquarters
Update 3 17:25 Bern and Zurich, Switzerland/Miami, Florida and Washington, DC, USA (GenevaLunch) - Shares in UBS rose more than 4 percent in the minutes following the news that Switzerland and the UBS have reached an Agreement in Principle in the civil case brought by the US Treasury department against Swiss bank UBS. The case will now be settled out of court, the Swiss government says in a statement issued late Friday afternoon. (background)
The two governments have reached an agreement in principle on the major issues in the case involving UBS and the IRS tax authority, US Justice Department attorney Stuart Gibson told the judge presiding over the case Friday 31 July. Neither he nor Judge Alan Gold provided details about the agreement, and the Swiss government says that “confidentiality has been agreed for the full duration of the negotiation process.”
Some early media reports noted that the judge has postponed the evidentiary hearing, whose opening had been delayed to Monday 3 August, until a week later, 10 August, with the parties scheduled to hold a status conference 7 August. But according to the Swiss government, the court has simply asked for an update on the details of the settlement Friday 7 August, and has scheduled a conference for this purpose.
Swiss Foreign Minister Micheline Calmy-Rey and US Secretary of State Hillary Clinton meet today in Washington, DC.
