The employer of Phil Gramm, the very man who championed to get rid of banking regulations and served as an economic adviser to the McCain Campaign, has been busted:
UBS AG, Switzerland’s largest bank, will pay $780 million to avoid U.S. prosecution and settle regulatory claims that it helped thousands of wealthy Americans use Swiss bank accounts to avoid paying taxes.
UBS agreed to resolve claims by the U.S. Justice Department that the bank helped U.S. citizens hide accounts from the Internal Revenue Service, the U.S. government said in statements released today. Prosecutors won’t pursue criminal charges if UBS makes promised reforms while paying $400 million in tax-related payments. The bank must also disgorge $380 million under accords with prosecutors and the Securities and Exchange Commission.
The agreement resolves SEC claims that it acted as an unregistered broker-dealer and investment adviser to thousands of U.S. citizens who held accounts directly or in the names of others. UBS spokesman Mark Arena wasn’t available for comment.
I bet they aren’t too happy at UBS about this. Perhaps Gramm will call them a company of “whiners”.