UBS shares dive after U.S. widens tax-dodge probe

[Joanne98]

Source: Reuters


ZURICH (Reuters) - Shares in UBS plunged on Friday after U.S. tax authorities said they were widening a probe into the Swiss bank and wanted 52,000 client names, a day after UBS agreed to a hefty fine to settle criminal charges.

The stock was down 9.4 percent at 11.60 Swiss francs at 3:29 a.m. EST, reversing some of Thursday's strong gains. The DJ Stoxx index of European banks was down 3.8 percent, and rival Credit Suisse was down 8.65 percent.

Analysts had welcomed Wednesday's news in the hope it would settle the U.S. probe, which is investigating help given to rich Americans to dodge tax, and allow crisis-hit UBS to focus on a badly needed restructuring.

But the civil U.S. lawsuit announced late on Thursday will continue to keep UBS under pressure and will be watched by the whole $7 trillion offshore banking industry, as it could open further cracks in the secrecy that helped the sector thrive.



Read more: http://www.reuters.com/article/topNews/idUSTRE51J18920090220