Consensus between the two countries over UBS case has not been achieved yet

On Monday the government of Switzerland conducted a special session where they were discussing discuss the U.S. tax evasion case hanging over Swiss bank UBS as negotiations to settle the issue are still on. Last week both Swiss and US failed to achieve an agreement that would allow UBS to avoid tax trial and thus the talks are going to continue further till August 12.

"My suspicion is that it is not good news. I'm sure there will be a resolution, but whether it will be as beneficial for UBS as the market was hoping is not looking likely," said Helvea analyst Peter Thorne.

Meantime, both governments said that they have already agreed in principle, and a settlement is expected to involve the disclosure of some of the names of the 52,000 U.S. clients holding secret Swiss accounts the U.S. authorities are seeking.

UBS shares, which have rallied in recent weeks on hopes of a deal, were down 0.3 percent at 16.29 Swiss francs at 4:45 a.m. EDT, in line with the DJ Stoxx European Banking index.

As reported by the Swiss media the problem now is how to transfer some of client data to US without violating strict Swiss banking secrecy laws.

"It is not a problem that has to do with UBS, but rather with the legal procedure," Finance Minister Hans-Rudolf Merz told Swiss television on Sunday, without going into details.