UBS to staff: Don't visit U.S.
In the midst of a tax evasion scandal in the U.S., UBS has reportedly told some of its staff not to travel there for fear of being arrested by U.S. authorities. Stephen Beard explains why the request was made.
UBS sign in Geneva, Switzerland (Fabrice Coffrini/AFP/Getty Images)
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Renita Jablonski: At the same time, Swiss banking giant UBS is dealing with its own drama. Already reeling from multibillion-dollar subprime losses, the bank is now embroiled in a tax evasion scandal in the U.S. The bank has reportedly told some of its staff not to travel to the states for fear of being arrested by U.S. authorities. Stephen Beard has more.
Stephen Beard: UBS has apparently told more than fifty bankers to steer clear of the U.S. All of them worked for a former UBS private banking unit catering for very rich Americans.
A former senior executive of that unit is already in trouble. He's been charged with helping a billionaire dodge his U.S. taxes. Reports of UBS's travel ban suggest there could be further problems looming.
Geoff Goldfarb is with the financial Web site Breaking Views:
Geoff Goldfarb: UBS might have been able to say this was a lawsuit brought against one man who used to work for them, and really not such a big deal. But the steps that they're taking, it sounds like they're taking today, would make it seem as though this investigation could expand.
UBS has written off $37 billion in subprime losses. But, says Goldfarb, the U.S. tax investigations could be more damaging. They go to the heart of UBS's main business: managing the assets of the super wealthy.
In London, this is Stephen Beard for Marketplace.
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