Swiss UBS may be expelled from the business?

On Monday February 23 the shares of the Swiss bank UBS plunged to $8.58, 9.1% lower than on Friday. The decline was reportedly incited by the decision of the federal judge who announced that months would be required for the IRS to determine if and when the U.S. tax regulator would gain access to accounts of 52,000 UBS clients in the US suspected of tax evasion.

Alan S. Gold, a district judge, scheduled a hearing on the IRS lawsuit for July 13 unless an agreement is reached first. The UBS was given the time until April 30 so that the bank could prepare its defense. As for the standpoint of the UBS the bank officials state that handing over the account names would violate Switzerland's banking secrecy legislation with further termination of the bank’s license to stay in the business.

"Such violations would expose these [UBS] employees to substantial prison terms, as well as fines, penalties and other sanctions," UBS lawyers said in a court filing.

The lawsuit seeking details of the 52,000 accounts containing an estimated $14.8 billion in assets was issued last week.