UBS Urges Swiss Parliament To Back U.S. Tax Deal
March 12, 2010 4:45 PM
UBS (NYSE: UBS) warned the Swiss government that failure on its part to back a deal, ending the tax row with the U.S., would result in a serious backlash for Swiss banks and the nation’s economy.
The Swiss government wants parliament to overrule a Swiss court decision that prevents it from honoring the agreement to hand over data on 4,450 clients of UBS, suspected of hiding money from the U.S. taxman, by cementing the treaty in law.
UBS, in a letter to politicians opposing the deal, said, “The risks for the Swiss finance center and the economy in general are very considerable if Parliament refuses approval.” Switzerland's biggest parliamentary party, does not hold enough seats to block approval in the lower house without the support of at least one other major party, but the government has no contingency plan should parliament not approve the deal.
