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UBS vs. IRS in Tax Settlement Case

|Includes: UBS Group AG (UBS)

We all know there are 52,000 Americans with offshore accounts overseas. Some of these accounts were purposedly used to avoid taxation. Now granted the IRS is a very powerful entity, the case for UBS in disclosing these individuals to the IRS is unraveling.

UBS is probably going to settle out of court with the IRS. However, UBS originally denied their request becasue it breached Swiss Bank privacy laws and agreements already in place. Rumors are in place for a double taxation bilateral law in the near future.

Personally, this is the IRS being big brother by telling another company in another country what to do no?The US should be able to track with their own intellgience this money, and not force an entity in headquartered in another country to hand over names.

The Swiss mainly believe that the US politicans have spent too much money and suffered deficits now that they are looking for any dollar they can possibly steal. The IRS believes it is just staking claim is what is theirs.

As for the stock, after hitting a low in March, I believe that it will go to about $18 a share in the next few months as UBS is seeing signs of a life.