“An indictment would be game over for Swiss banks if it ultimately prevented them from doing business in the U.S.,” said Xavier Oberson, a Geneva-based lawyer and academic.
Big Fines
Credit Suisse Group AG was fined $2.6 billion in May after its main subsidiary admitted helping Americans cheat the IRS. U.S. Attorney General Eric Holder said the bank failed to take basic steps to comply with tax laws, destroyed evidence, and conducted a “shamefully inadequate internal inquiry.”
The U.S. widened its investigation of Swiss wealth managers after UBS AG, the country’s largest bank, settled a criminal case in February 2009 by paying $780 million for helping thousands of Americans evade taxes. A day later, the U.S. sued UBS to force disclosure of as many as 52,000 American accounts. UBS agreed later to hand over about 4,500 accounts.
Raoul Weil, whose 24-year career at UBS culminated as head of wealth management, is on trial for tax conspiracy in Florida.
The Department of Justice has several teams of lawyers handling the negotiations, each working with about a half-dozen banks, a person with knowledge of the letter said. Their task is to review information provided by the banks, prepare admissions of wrongdoing and set penalties, a process that has been going on most of the year, according to the person, who asked not to be named as the matter is confidential.