WRAPUP 1-UBS outshines rivals in Q2, DB holds ground

July 28, 2010 By Leave a Comment

ZURICH/FRANKFURT, July 27 (Reuters) – UBS (UBSN.VX) outdid rivals thanks to strong investment banking revenues and shrinking client outflows, while Deutsche Bank (DBKGn.DE) held ground after a drop in loan loss provisions.

Driven by strong equities and currency revenues, UBS’s (UBS.N) improved investment banking performance stood out against weak results at several U.S. rivals in the face of sovereign debt concerns, suggesting Chief Executive Oswald Gruebel’s tough restructuring strategy is working.

Clients drained a total of about 5 billion francs at the Swiss bank’s wealth and asset management divisions, the lowest quarterly withdrawal UBS has experienced since it started to bleed assets at the start of 2008, increasing the chance UBS will stop the asset bleeding by year end.

“The results are rather good. The rebuilding of the business is working successfully,” said Helvea analyst Peter Thorne as UBS shares were indicated to open up 5 percent.

“We may start to see inflows at the end of this year, beginning of next.”

UBS turned in a net profit of 2 billion Swiss francs ($1.90 billion), its third quarterly profit in a row after a string of losses following the financial crisis and a tax row. It was well above forecasts for 1.34 billion francs. [ID:nLDE66M0KQ]

Germany’s top lender Deutsche posted second-quarter pretax profit in line with expectations, helped by lower loan loss provisions amid weaker industry trends in investment banking.

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For a graphic on earnings forecasts click on:

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Its corporate banking and securities division, run by 47-year old Anshu Jain, posted 779 million euros in pretax profit. These accounted for the lion’s share of 1.52 billion euros ($1.96 billion) in group pretax earnings.

Deutsche performed less strongly than in the first quarter, but 16 percent stronger than during the year-earlier period, mirroring a trend among U.S. peers like Goldman Sachs (GS.N) and Morgan Stanley (MS.N). [ID:nN19193014] [ID:nN21197777] [ID:nSGE66K0EM]

Deutsche Bank shares were indicated 1.2 percent lower in premarket trade, on concerns over the bank’s outlook, and on news the bank’s trading income, traditionally a strong point, was weak.

Deutsche Bank reiterated it expects to reach its 2011 target of 10 billion euros from its core businesses but added a note of caution.

“While some of the environmental variables are in line with or ahead of our assumptions, others have not yet reached the expected levels, particularly with respect to the normalisation of interest rates,” the bank said in its quarterly report.

On Thursday, Credit Suisse posted second-quarter profit of 1.6 billion francs, helped by tax and accounting gains. [ID:nLDE66M0KQ] (Writing by Lisa Jucca, Additional reporting by Katie Reid in Zurich; Editing by Louise Heavens)

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Swiss consumption to pick up further – UBS

July 28, 2010 By Leave a Comment

ZURICH, July 27 (Reuters) – The UBS consumption index for Switzerland rose to its highest level in two years in June, Swiss bank UBS said, in another sign that consumers are bolstering the economic recovery by spending more.

The indicator, based on five subcomponents measuring consumer behaviour, rose to 1.81 from 1.71 in May, UBS said in a statement on Tuesday. The May number was revised down from 1.74 points.

“We expect the consumption indicator to rise further in the coming months,” UBS economists said.

Several of the indicator’s components, such as consumer sentiment and business activity in retail, should improve considerably, they said. The rise in June was mainly due to the sharp increase in new car registrations.

The indicator follows private consumption trends in Switzerland with a lead of about three months over official figures. Private consumption accounts for about 60 percent of gross domestic product.

The Swiss economy has emerged less bruised than many others in Europe from the crisis thanks to resilient consumers, and is on track for a strong recovery.

The central bank expects the economy to grow by around 2 percent this year.

The UBS indicator is calculated on the basis of new car sales, retail business conditions, consumer confidence, the number of overnight hotel stays by Swiss nationals in Switzerland and credit card transactions. (Reporting by Sven Egenter; Editing by Jan Dahinten)

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UBS Second Quarter Pre-Tax Profit of CHF 2,614 Million

July 28, 2010 By Leave a Comment

ZURICH & BASEL, Switzerland–(Business Wire)–
Regulatory News:

UBS: (NYSE:UBS)(SWX:UBSN):

A good performance in volatile markets

* Net profit attributable to UBS shareholders of CHF 2,005 million
* Diluted EPS of CHF 0.52
* Annualized return on equity of 19.5% in the first half of 2010

CHF 1.3 billion pre-tax profit from the Investment Bank, up 10% on first quarter
2010

* Equities revenues of CHF 1,365 million, up 9% on the first quarter
* Foreign exchange revenues up significantly on the first quarter
* Fixed income, currencies and commodities generated CHF 1,703 million of
revenues

Wealth Management & Swiss Bank profits resilient and in line with the first
quarter

* Pre-tax profit of CHF 1,131 million
* Margin improved in Wealth Management with annualized gross margin up 2 bps to
95 bps

Clear improvements in Net New Money

* Third-party inflows of CHF 10.9 billion and overall net new money inflows of
CHF 3.4 billion in Global Asset Management
* Net new money outflows of CHF 5.5 billion for Wealth Management & Swiss Bank
and CHF 2.6 billion for Wealth Management Americas, compared with outflows of
CHF 8.2 billion and CHF 7.2 billion in the first quarter respectively

Strong capital ratios; focus on risks and costs

* Quarter-end BIS tier 1 capital ratio was 16.4% compared with 16.0% on 31 March
2010; core tier 1 capital ratio increased to 13.0% from 12.5% over the same time
frame
* Group cost / income ratio of 71.2% in the second quarter, underlying cost base
remained broadly stable
* Risk-weighted assets down by CHF 4 billion to CHF 205 billion on 30 June 2010;
FINMA leverage ratio unchanged at 4.1% compared with first quarter 2010

Following Swiss parliamentary approval of the US-Swiss Government Agreement, UBS
expects to achieve a comprehensive resolution of all outstanding matters with
the US government related to the US cross-border business by October 2010.

Commenting on UBS’s second quarter 2010 results, Group CEO Oswald J. Grübel
said: “This was a good result in volatile market conditions, and demonstrates
the progress we are making as we move towards our mid-term targets. Our
Investment Bank has improved its competitive positioning, and profits in Wealth
Management & Swiss Bank are stable. Our portfolio of businesses is increasingly
able to generate competitive returns in a variety of market conditions, and our
risk management framework has proven robust. I remain confident in our future
and I firmly believe that we have the right strategy in place.”

Second quarter 2010 net profit of CHF 2,005 million

UBS reports a second quarter net profit attributable to UBS shareholders of CHF
2,005 million compared with CHF 2,202 million in first quarter 2010.

Wealth Management & Swiss Bank’s pre-tax profit of CHF 1,131 million in the
second quarter was broadly stable compared with CHF 1,161 million in the first
quarter. Wealth Management’s pre-tax profit of CHF 658 million was 5% lower than
in the first quarter, reflecting broadly stable revenues and slightly higher
operating expenses. The gross margin increased to 95 basis points per annum, up
2 basis points from the first quarter. The invested asset base declined 2%
quarter-on-quarter in average terms, mostly reflecting the effects of lower
market values. Expenses increased 2%, partly due to the UK Bank Payroll Tax as
well as the full effect of annual salary increases. Retail & Corporate’s pre-tax
result was CHF 473 million, up 2% on the first quarter. Increased credit-related
fee income more than offset lower brokerage and sales commissions. Costs
continued to be tightly managed and the cost / income ratio for Retail &
Corporate remained stable at 52.1%.

Wealth Management Americas recorded a pre-tax loss of CHF 67 million compared
with a pre-tax profit of CHF 15 million in the first quarter. However, excluding
restructuring charges of CHF 146 million principally related to a
rationalization of the property portfolio, the pre-tax profit improved to CHF 79
million compared with CHF 36 million in the first quarter, primarily due to
higher fee income and transactional revenues.

Global Asset Management’s pre-tax profit was CHF 117 million in the second
quarter compared with CHF 137 million in the first quarter. Revenues were stable
with higher management fees offsetting declining performance fees in a volatile
market. Costs increased 5%, in part due to higher charges from the amortization
of compensation awards related to the prior year.

The Investment Bank recorded a pre-tax profit of CHF 1,314 million compared with
CHF 1,190 million in the first quarter. Equities revenues were up 9% compared
with the first quarter at CHF 1,365 million, demonstrating the strength of our
largest flow business in unstable markets. Revenues in the fixed income,
currencies and commodities trading business declined to CHF 1,703 million due to
defensive positioning of the books in the quarter and lower client activity,
with declines in credit and emerging markets offsetting gains in our foreign
exchange business, which benefited from higher market volatility and stronger
client flows. Revenues for the investment banking department decreased to CHF
478 million in the context of a contraction of the global investment banking fee
pool compared with the first quarter. The Investment Bank`s revenues include a
CHF 595 million own credit gain on financial liabilities designated at fair
value. Costs were CHF 2,788 million, up 3% on the previous quarter, but included
a CHF 228 million charge relating to the UK Bank Payroll Tax. Excluding this
tax, costs fell on reduced accruals for variable compensation.

Treasury activities and other corporate items generated a pre-tax profit of CHF
119 million in the second quarter compared with CHF 306 million in the first
quarter.

Net profit attributable to minority interests of CHF 298 million includes the
recognition of a dividend obligation for preferred securities in second quarter
2010, compared with CHF 6 million in first quarter 2010.

Second quarter 2010 results include a tax charge of CHF 311 million compared
with CHF 603 million in the previous quarter.

Business division performance: 2Q10 vs 1Q10

Reporting by business division
CHF million Total operating income Total operating expenses Performance before tax from
continuing operations
For the quarter ended 30.6.10 31.3.10 % change 30.6.10 31.3.10 % change 30.6.10 31.3.10 % change
Wealth Management 1,891 1,904 (1) 1,232 1,208 2 658 696 (5)
Retail & Corporate 995 978 2 522 512 2 473 465 2
Wealth Management & Swiss Bank 2,886 2,882 0 1,754 1,720 2 1,131 1,161 (3)
Wealth Management Americas 1,485 1,362 9 1,552 1,347 15 (67) 15
Global Asset Management 522 521 0 405 385 5 117 137 (15)
Investment Bank 4,101 3,889 5 2,788 2,699 3 1,314 1,190 10
Treasury activities and other corporate items 191 356 (46) 72 49 47 119 306 (61)
UBS 9,185 9,010 2 6,571 6,200 6 2,614 2,810 (7)

Net new money and invested assets

Wealth Management – Net new money outflows reduced further to CHF 5.2 billion in
second quarter 2010 from CHF 8.0 billion in the prior quarter, with continued
net inflows in the Asia Pacific region, from ultra high net worth clients and in
certain European locations. Overall, net new money in Europe remained slightly
negative but net outflows decreased again compared with the prior quarter.

Retail & Corporate – Net new money outflows were CHF 0.3 billion in second
quarter 2010 compared with CHF 0.2 billion in first quarter 2010.

Wealth Management Americas – Net new money outflows were CHF 2.6 billion in
second quarter 2010 compared with CHF 7.2 billion in first quarter 2010.
Including interest and dividends, as is consistent with US market practice, the
division recorded net new money inflows of CHF 2.0 billion. For the second
quarter in succession, net new money was generated by financial advisors
employed with UBS for more than one year.

Global Asset Management – In the second quarter, the business division recorded
positive net new money of CHF 3.4 billion compared with net outflows of CHF 2.6
billion in the prior quarter. Net inflows from third parties of CHF 10.9 billion
were partially offset by net outflows of CHF 7.5 billion from clients of UBS’s
wealth management businesses. Excluding money market flows, net new money
inflows were CHF 6.2 billion compared with net outflows of CHF 1.6 billion in
first quarter 2010.

Invested assets were CHF 2,180 billion on 30 June 2010 compared with CHF 2,267
billion on 31 March 2010. This decrease was mainly due to negative market
movements. Of the invested assets, CHF 917 billion were attributable to Wealth
Management & Swiss Bank (CHF 786 billion thereof attributable to Wealth
Management and CHF 131 billion attributable to Retail & Corporate); CHF 693
billion were attributable to Wealth Management Americas; and CHF 569 billion
were attributable to Global Asset Management.

Capital base and balance sheet

UBS’s risk management framework has proven to be robust in testing market
conditions. In light of these conditions, UBS adopted a more cautious approach
to risk-taking during the quarter. In the Investment Bank, the average trading
risk decreased and the business division achieved further significant reductions
in its residual risk positions.

Risk-weighted assets, at CHF 205 billion at the end of the second quarter, were
down slightly as UBS continued to reduce the overall risk profile of the Group.
While the balance sheet increased by 8% over the quarter, this mostly reflected
higher replacement values for derivative instruments, which are highly sensitive
to market volatility. BIS tier 1 capital ratio continued to increase and stood
at 16.4% on 30 June 2010 compared with 16.0% at the end of the prior quarter.
The FINMA leverage ratio was 4.1%, unchanged from the first quarter.

Outlook

Concerns about the sustainability of the global economic recovery may leave
markets volatile and with little direction. We believe that this could lead to
more subdued client activity levels across our businesses. In addition, we
expect that our portfolio management fee income will be lower than in the second
quarter due to the lower level of invested assets at the end of June.

We are delivering on our strategy and expect to make further progress over the
coming quarters. We are confident about our future.

UBS key figures

For the quarter ended Year-to-date
CHF million, except where indicated 30.6.10 31.3.10 30.6.09 30.6.10 30.6.09

Group results
Operating income 9,185 9,010 5,770 18,195 10,740
Operating expenses 6,571 6,200 7,093 12,772 13,621
Operating profit before tax (from continuing operations) 2,614 2,810 (1,323) 5,424 (2,881)
Net profit attributable to UBS shareholders 2,005 2,202 (1,402) 4,207 (3,376)
Diluted earnings per share (CHF)1 0.52 0.58 (0.39) 1.10 (0.96)

Key performance indicators, balance sheet and capital management2
Performance
Return on equity (RoE) (%) 19.5 (21.0)
Return on risk-weighted assets, gross (%) 17.5 8.9
Return on assets, gross (%) 2.6 1.3
Growth
Net profit growth (%)3 (8.9) 78.9 N/A N/A N/A
Net new money (CHF billion)4 (4.7) (18.0) (39.5) (22.7) (54.4)
Efficiency
Cost / income ratio (%) 71.2 69.7 115.2 70.5 111.1

As of
CHF million, except where indicated 30.6.10 31.3.10 31.12.09

Capital strength
BIS tier 1 ratio (%)5 16.4 16.0 15.4
FINMA leverage ratio (%)5 4.12 4.12 3.93
Balance sheet and capital management
Total assets 1,458,223 1,356,427 1,340,538
Equity attributable to UBS shareholders 46,017 42,800 41,013
BIS total ratio (%)5 20.4 20.0 19.8
BIS risk-weighted assets5 204,848 209,138 206,525
BIS tier 1 capital5 33,685 33,404 31,798

Additional information
Invested assets (CHF billion) 2,180 2,267 2,233
Personnel (full-time equivalents) 63,876 64,293 65,233
Market capitalization6 55,393 65,660 57,108
1 Refer to “Note 8 Earnings per share (EPS) and shares outstanding” in the “Financial information” section of the second quarter 2010 report.
2 For the definitions of UBS’s key performance indicators refer to the “Measurement and analysis of performance” section on page 33 of UBS’s Annual Report 2009. 3 Not meaningful if either the current period or the comparison period is a loss period. 4 Excludes interest and dividend income. 5 Refer to the “Capital management” section of the second quarter 2010 report. 6 Refer to the appendix “UBS registered shares” of the second quarter 2010 report.

Income statement
For the quarter ended % change from Year-to-date
CHF million, except per share data 30.6.10 31.3.10 30.6.09 1Q10 2Q09 30.6.10 30.6.09

Continuing operations
Interest income 4,864 4,798 6,035 1 (19) 9,661 13,680
Interest expense (3,771) (2,980) (4,892) 27 (23) (6,751) (10,638)
Net interest income 1,093 1,818 1,143 (40) (4) 2,911 3,042
Credit loss (expense) / recovery (48) 116 (388) (88) 68 (1,523)
Net interest income after credit loss expense 1,045 1,934 755 (46) 38 2,979 1,519
Net fee and commission income 4,366 4,372 4,502 0 (3) 8,738 8,744
Net trading income 3,450 2,368 220 46 5,818 (410)
Other income 324 337 292 (4) 11 660 887
Total operating income 9,185 9,010 5,770 2 59 18,195 10,740
Personnel expenses 4,645 4,521 4,578 3 1 9,166 8,542
General and administrative expenses 1,638 1,419 1,699 15 (4) 3,057 3,334
Depreciation of property and equipment 257 234 284 10 (10) 491 537
Impairment of goodwill 0 0 492 (100) 0 1,123
Amortization of intangible assets 31 27 39 15 (21) 58 84
Total operating expenses 6,571 6,200 7,093 6 (7) 12,772 13,621
Operating profit from continuing operations before tax 2,614 2,810 (1,323) (7) 5,424 (2,881)
Tax expense 311 603 (208) (48) 914 86
Net profit from continuing operations 2,303 2,207 (1,115) 4 4,509 (2,967)

Discontinued operations
Profit from discontinued operations before tax 0 2 7 (100) (100) 2 17
Tax expense 0 0 0 0 0
Net profit from discontinued operations 0 2 7 (100) (100) 2 17
Net profit 2,303 2,208 (1,108) 4 4,511 (2,949)
Net profit attributable to minority interests 298 6 294 1 304 427
from continuing operations 298 5 290 3 303 418
from discontinued operations 0 1 4 (100) (100) 1 9

Net profit attributable to UBS shareholders 2,005 2,202 (1,402) (9) 4,207 (3,376)
from continuing operations 2,005 2,202 (1,405) (9) 4,207 (3,385)
from discontinued operations 0 1 3 (100) (100) 1 8

Earnings per share (CHF)
Basic earnings per share 0.53 0.58 (0.39) (9) 1.11 (0.96)
from continuing operations 0.53 0.58 (0.40) (9) 1.11 (0.96)
from discontinued operations 0.00 0.00 0.00 0.00 0.00
Diluted earnings per share 0.52 0.58 (0.39) (10) 1.10 (0.96)
from continuing operations 0.52 0.58 (0.40) (10) 1.10 (0.96)
from discontinued operations 0.00 0.00 0.00 0.00 0.00

Media release available at www.ubs.com/media
Further information on UBS’s quarterly results is available at www.ubs.com/investors:

* Second quarter 2010 financial report
* Second quarter 2010 results slide presentation
* Letter to shareholders (English, German, French and Italian)
Webcast: The results presentation, with Oswald J. Grübel, Group Chief Executive Officer, John Cryan, Group Chief Financial Officer and Caroline Stewart, Global Head of Investor Relations, will be webcast live on www.ubs.com/investors at the following times on 27 July 2010:

* 0900 CET
* 0800 BST
* 0300 US EST

Webcast playback will be available from 1400 CET on 27 July 2010.

Webcast: The results presentation, with Oswald J. Grübel, Group Chief Executive
Officer, John Cryan, Group Chief Financial Officer and Caroline Stewart, Global
Head of Investor Relations, will be webcast live on www.ubs.com/investors at the
following times on 27 July 2010:

* 0900 CET
* 0800 BST
* 0300 US EST

Webcast playback will be available from 1400 CET on 27 July 2010.

Cautionary Statement Regarding Forward-Looking Statements

This release contains statements that constitute “forward-looking statements,”
including but not limited to management`s outlook for UBS`s financial
performance and statements relating to the anticipated effect of transactions
and strategic initiatives on UBS`s business and future development. While these
forward-looking statements represent UBS`s judgments and expectations concerning
the matters described, a number of risks, uncertainties and other important
factors could cause actual developments and results to differ materially from
UBS`s expectations. Additional information about those factors is set forth in
documents furnished and filings made by UBS with the US Securities and Exchange
Commission, including UBS`s financial report for second quarter 2010 and UBS`s
Annual Report on Form 20-F for the year ended 31 December 2009. UBS is not under
any obligation to (and expressly disclaims any obligation to) update or alter
its forward-looking statements, whether as a result of new information, future
events or otherwise.

Rounding

Numbers presented throughout this release may not add up precisely to the totals
provided in the tables and text. Percentages and percent changes are calculated
based on rounded figures displayed in the tables and text and may not precisely
reflect the percentages and percent changes that would be derived based on
figures that are not rounded.

UBS AG
Media Relations
Tel. +41-44-234 85 00
www.ubs.com

Copyright Business Wire 2010

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UBS seeks 2,200 new hires in Asia-region chief

July 26, 2010 By Leave a Comment

ZURICH, July 25 (Reuters) – Swiss bank UBS (UBSN.VX)(UBS.N), the top wealth manager in Asia, plans to hire 2,200 new staff in the region, the head of UBS in Asia Pacific said in an Swiss magazine interview, a move that would return it to its pre-crisis splendour.

Chi-Won Yoon, who became Chief Executive of UBS Group Asia Pacific in June 2009, also said the euro’s gyrations could influence UBS’ second quarter results, according to an article on the website of trade magazine “Schweizer Bank”. “The defensive phase, in which we tried to mantain our standing and contain any loss of position, is behind us. We are now back on the offensive,” Yoon, who joined UBS in 1997 and is also a UBS executive board member, was quoted as saying in an interview.

“We have 7,300 employees in the region. In three years they should be 9,500, the same level we had in mid-2007.” Yoon said UBS’ expansion would go beyond the private banking business.

“We remain the leading wealth manager in the region but we also have a strong position in investment banking and securities trading. Here we are going to continue to expand,” he said.

Yoon said UBS was, together with U.S. investment bank Goldman Sachs (GS.N), already a leader in securities trading and investment banking in China. Right now, most of the business was done outside mainland China, like stock listings in Hong Kong.

But he said that banking activity in China itself would become more and more attractive.

“The private banking business of our UBS Securities division in four big Chinese cities is growing vigorously,” he said.

China is already the seventh country in the world in terms of millionaires. However, Yoon said bureaucracy and administrative procedures remained a challenge.

Beyond China, UBS is focusing on India, HongKong, Singapore, South Korea and Australia, Yoon said. (Reporting by Lisa Jucca; editing by Karen Foster)

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C.Suisse posts 1.6 bln Sfr net profit in Q2

July 23, 2010 By Leave a Comment

July 22 (Reuters) – Swiss bank Credit Suisse (CSGN.VX)(CS.N) posted net profit of 1.6 billion Swiss francs ($1.52 billion), above forecasts, and continued to attract money from wealthy clients, the company said on Thursday.

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UPDATE 1-Deutsche Bank names head of Asia corporate finance

July 19, 2010 By Leave a Comment

HONG KONG, July 18 (Reuters) – Deutsche Bank has appointed Henry Cai, a former top UBS deal maker, as its head of corporate finance in Asia, in a widely expected move, as banks in the region go on an aggressive hiring spree in anticipation of a strong pick up in mergers and acquisition.

Cai had resigned as Swiss bank UBS’s chairman of Asia investment banking and head of investment banking for China earlier this month.

Since his departure from UBS, speculation was rife that Cai was headed to Deutsche Bank to work closely with former colleague Robert Rankin.

Cai has been with UBS since March 2006 when he joined from BNP Paribas, initially as chairman of investment banking for China.

He has played a big role in increasing the firm’s China business. He will join Deutsche Bank’s Asia Pacific executive committee and would report to Rankin, Deutsche said in the statement. Cai will be based in Hong Kong.

Rankin left his role as UBS’s Asia Pacific head of investment banking last year to be Deutsche Bank’s Asia Pacific CEO.

Cai was closely involved in many of the first wave of Chinese enterprises to be listed on the Hong Kong H-share market and U.S. stock exchanges, including Shanghai Petrochemical, Tsingtao Beer, Deutsche Bank said.

According to sources, Cai played a key role in relationships and transactions with Bank of China, China Merchants Bank 968.HK Sinopharm 099.HKand automaker BYD 211.HK.

Following Cai’s departure, UBS had reshuffled the top ranks of its China investment banking business, a group that has served as a key source of strength for the Swiss bank’s regional operations. It named David Chin, the Asia-Pacific co-head of investment banking, as the interim head of China investment banking.

(Reporting by Denny Thomas; Editing by Jonathan Thatcher)

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Euro adds to broad gains, hits 2-mth high vs dollar

July 10, 2010 By Leave a Comment

July 9 (Reuters) – The euro hit a two-month high against the dollar and rose broadly on Friday as improving risk demand prompted European banks to pick up the currency.

The euro EUR= climbed as high as $1.2723 according to electronic trading platform EBS. London traders cited demand from a Swiss bank from around $1.2680 as helping to push the single currency higher.

It rose broadly, climbing to 112.69 yen EURJPY= and 83.84 pence against sterling EURGBP=D4, its highest versus both currencies since June 21. (Reporting by Naomi Tajitsu)

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UPDATE 1-HSBC clients in U.S. tax probe – report

July 7, 2010 By Leave a Comment

HONG KONG/SINGAPORE, July 6 (Reuters) – Some HSBC Holdings (HSBA.L) clients are being investigated by the U.S. Justice Department on suspicion of failing to disclose accounts in India or Singapore, Bloomberg reported on Monday, citing three people it did not identify.

Letters from the Justice Department sent to HSBC (0005.HK) clients did not mention the bank by name, but were directed to people with accounts at the bank, the report added, citing unnamed lawyers.

Gareth Hewett, HSBC’s spokesman in Hong Kong, declined to comment on the case, but said the bank “fully supports government moves for appropriate disclosure by its citizens”, and that it “does not condone or assist tax evasion”.

Two sources familiar with the matter in Singapore said there did not appear to be any concerted investigation by the U.S. Internal Revenue Service into HSBC accounts in the city-state.

Earlier this year, the U.S. government charged several former wealthy clients of UBS AG (UBSN.VX) after the Swiss bank last year admitted to actively helping U.S. citizens evade taxes overseas. Two clients of HSBC were also charged by U.S. prosecutors with concealing $45 million in unreported bank accounts. [ID:nN15258806] (Reporting by Kelvin Soh and Kevin Lim; Editing by Chris Lewis)

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Swiss stocks – Factors to watch on July 5

July 6, 2010 By Leave a Comment

ZURICH, July 5 – The following are some of the main factors expected to affect Swiss stocks on Monday:

SARASIN (BSAN.S)

Dutch Rabobank [RABN.UL] has no plans to sell its stake in Swiss private bank Sarasin (BSAN.S), the chief executive of the Swiss bank said in an interview published on Friday.

For related news click on [BSAN.S]

ECONOMY [M-CH]

* Switzerland’s central bank is keeping a close eye on the Swiss franc’s movements, its head was quoted as saying on Sunday, as markets seek clues on whether it will step in again to stem the franc’s rise against the euro. [ID:nL19616215]

* Swiss retail sales for May are due at 0715 GMT.ECONCH

COMPANY STATEMENTS [CNR-CH]

* Partners Group (PGHN.S) leads the mezzanine financing for AcadeMedia on behalf of its clients [PGHN.S]

EQUITY RESEARCH [CH-RCH]

* BOFA MERRILL RAISES COMPAGNIE FINANCIERE RICHEMONT SA (CFR.VX) TO BUY FROM NEUTRAL [CFR.VX]

FOR COMPANIES TRADING EX-DIVIDEND, PLEASE CLICK ON:

.EX.S for all Swiss stocks

.EXSMI.S for blue chips

.EXNSMI.S for other stocks

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Swiss consumption indicator ticks up in May-UBS

July 1, 2010 By Leave a Comment

ZURICH, June 29 (Reuters) – The UBS consumption indicator
for Switzerland crept up slightly in May, overcoming a steep
decline in retail business activity as consumer sentiment and
new car registrations jumped, Swiss bank UBS said on Tuesday.

The indicator rose to 1.74, up from April’s revised reading
of 1.73. UBS said the retail business activity reading tends to
fluctuate considerably from month to month.

The slight rise was mainly due to improving consumer
sentiment and a 7.7 percent growth in new car registrations for
the month compared with the previous year, UBS said.

“We expect the current flattening out of the consumption
indicator to be temporary and the indicator to rise to the
level of consumption growth in the coming months,” said UBS,
adding that several indicator components were set to improve.

The latest estimates by the economics secretariat showed
private consumption grew 2.3 percent in the first quarter from
the previous year, allowing for inflation, UBS said.

Analysts have said the consumption indicator, and the
Purchasing Manager’s index due later this week are likely to
highlight the strength of the Swiss economy, further buoying
the Swiss franc which on Tuesday hit yet another record high
against the euro.

The UBS indicator follows private consumption trends in
Switzerland with a lead of about three months over official
figures.

It is calculated on the basis of new car sales, business
conditions in the retail sector, consumer confidence, the
number of overnight hotel stays by Swiss nationals in
Switzerland and credit card transactions.
(Editing by Kazunori Takada)

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Factbox: Top dealmakers quotes on 2010 first-half M&A

June 26, 2010 By Leave a Comment

(Reuters) – Global mergers and acquisitions volumes in the first half of 2010 fell to their lowest level since 2004, hurt by continuing weakness from the economic crisis, European debt worries and market volatility.

Deals

Global M&A so far this year was worth just under $976 billion, according to Thomson Reuters data, down slightly from a year earlier, but far below the first half of 2007, M&A’s peak year.

The following are quotes from top dealmakers on the weak first half, strength in emerging markets and expectations going forward.

LEE LEBRUN, CO-HEAD OF AMERICAS M&A AT SWISS BANK UBS(UBSN.VX)

“Overall, for the year, I expect a flat M&A market. Positives for the market are large cash balances. Cash represents 11 percent of total assets. Combined with low nominal interest rates, there has never been lower opportunity cost of cash.”

“Corporations spent the past two years cutting costs and improving balance sheets. Looking forward, the focus will be on top-line growth and deployment of substantial cash balances, which should provide a tailwind for M&A.”

“CEO confidence is a very real issue — we saw a little bit of life in the first quarter, but the sovereign issue in Europe made some people nervous and pull back.”

JEFFREY KAPLAN, GLOBAL HEAD OF MERGERS AND ACQUISITIONS AT BANK OF AMERICA MERRILL LYNCH (BAC.N)

“M&A markets are fragile. There was a slight loss of momentum in the second quarter. Coming off year-end (2009) into Q1, momentum was good. There was strong strategic activity and active P/E bidding, much of which slowed down in the second quarter. EMEA has seen the biggest slowdown.”

“Overall, we see it as flattish for the year — hoping for moderately better. But the first half was flat and momentum lacking. Our hope would be that stabilizing credit and equity markets will create activity in Q3 and Q4. The longer it takes to achieve stability, the more likely the deal environment will be postponed.”

JOHN FINLEY, CO-HEAD OF THE M&A GROUP AND HEAD OF GLOBAL M&A AT SIMPSON THACHER & BARTLETT

“What we’re seeing is that Asia and South America are an increasingly significant portion of our M&A practice. As the markets get bigger in those areas, inevitably there’s going to be more M&A volume. This trend has been strengthened by the difficult markets that North America and Europe are experiencing. Places like Brazil and China have not been affected by the financial crisis in the same way as the U.S. or Europe.”

GARY POSTERNACK, HEAD OF M&A FOR THE AMERICAS AT BARCLAYS CAPITAL (BARC.L)

“Over the first six months of this year, activity is essentially flat to last year. However, last year’s volumes were inflated by a number of large government financial interventions.”

“If you back out that unusual activity, we are currently on a run-rate of about 10 percent higher than last year, and we are expecting a similar improvement on a run-rate basis for the remainder of the year.”

HERNAN CRISTERNA, HEAD OF M&A FOR EMEA, JPMORGAN (JPM.N)

“There are two trends ahead. Our clients are thinking, can we go outside our core markets to find higher growth, or can we find bargains — undervalued assets in mature markets.”

“The amount available to finance private equity deals continues to increase. Depending on the characteristics of the company and the sector in which it operates, debt financing of 3 to 5 billion euros for a below-investment-grade deal can be raised.”

STEVE KROUSKOS, AMERICAS MARKETS LEADER FOR ERNST & YOUNG’S TRANSACTION ADVISORY SERVICES

“I’m cautiously optimistic. Throughout June we’ve seen activity pick up, and I think we’ll continue to see it pick up.”

“For the year, I’d say M&A will be up — moderately up. I think that, obviously, anything that could rock the economy could change that forecast, but overall I think M&A will be up” compared with 2009.

“Overall, M&A activity is picking up. The pipeline is building. It can take six to 12 or 18 months to get a deal done.”

BOB KENNEDY, PARTNER WITH LAW FIRM JONES DAY IN NEW YORK

“In the U.S., there is momentum and a lot of traction. It’s not off the charts — it’s a slow creeping up of activity … the European debt crisis has impacted most of the world, but it hasn’t impacted the U.S. yet much.”

(Compiled by Michael Erman; reporting by Paritosh Bansal in New York, Jessica Hall in Philadelphia, Victoria Howley and Quentin Webb in London)

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UPDATE 1-Seven appear in UK court on insider dealing charge

April 16, 2010 By Leave a Comment

LONDON, April 14 (Reuters) – Seven men charged with running an insider trading ring with information gleaned from the London printers of Swiss bank UBS (UBSN.VX)(UBS.N) and UK brokerage Cazenove (JPM.N) appeared in a British court on Wednesday.

Mitesh Shah, Neten Shah, Paresh Shah, Bijal Shah, Truptesh Patel, Ali Mustafa and Pardip Saini are alleged to have used confidential information to trade in 12 UK-listed firms over two years, including media group Reuters during its 2007 takeover by Thomson Corp (TRI.TO) (TRI.N) of Canada.

It is the largest insider dealing case to be brought before court by the Financial Services Authority (FSA), which is attempting to crack down on market abuse and has grabbed the headlines over the last month with high-profile arrests.

The men, aged between 29 and 47 years old, spoke only to give their names, addresses and dates of birth before the case was referred to a higher Crown court for a preliminary hearing on April 22. Apart from 29-year-old Mustafa, who was dressed in a leather jacket and walked with a swagger, the men were soberly dressed and impassive.

The FSA, which is seeking the extradition of an eighth suspect linked to the so-called “printer” ring, last month charged the men with 13 counts of insider dealing it alleges netted them 2.5 million pounds ($3.8 million). Mitesh Shah was also charged with spread betting to launder proceeds. [ID:nLDE6300OX]

Lawyers in the case contacted by Reuters declined to comment on whether four of the defendants were related or how they would plead. Michael Potts, a partner at law firm Byrne and Partners representing Paresh Shah, said only his client was Indian.

The defendants, who face up to seven years in jail if found guilty, have been granted bail. Under the bail conditions, they have surrendered their passports and need to notify the FSA 48 hours before any plans to change address.

SILENCING CRITICS

The FSA, whose enforcement wing has more than doubled to 450 staff since 2005 after hiring a bevy of criminal lawyers and specialist staff, is on a quest to silence critics who accuse it of failing to prosecute senior employees at top institutions.

The regulator has brought three successful criminal cases to date, including a case against Malcolm “Streaky” Calvert, a former partner at Cazenove, who was jailed for 21 months last month in its most high-profile victory to date.

That conviction was closely followed in March by the dramatic arrests of seven insider dealing suspects, including a managing director at Deutsche Bank (DBKGn.DE), the head of sales trading at Exane, part-owned by France’s BNP Paribas (BNPP.PA), and a trader at hedge fund Moore Capital. [ID:nLDE62N1WU]

Although the FSA’s most recent figures show unusual share price movements in around 29 percent of takeover announcements, insider dealing cases remain notoriously lengthy, painstaking and tough to nail.

In the Calvert case, the prison sentence fell well short of the seven year maximum term for insider dealing — and two accomplices walked free.

The FSA was unable to identify Calvert’s “primary insider” and source of share tips while the other accomplice, Bertie Hatcher, a friend who bought stock shortly before takeovers were announced, turned informant in return for a fine. [ID:nLDE62A1HW] ($1=.6511 Pound) (Additional reporting by Kylie MacLellan; editing by Karen Foster)

Filed Under: International News Tagged With: , , , , , , , , , , , , , , , , , , ,

Large chunk of investors rap UBS on bonuses

April 16, 2010 By Leave a Comment

(Reuters) – Around 40 percent of UBS (UBSN.VX)(UBS.N) shareholders rapped the Swiss bank for awarding hefty pay checks despite big losses, a warning to Chief Executive Oswald Gruebel not to follow market excesses.

A majority of shareholders present at a packed annual meeting in Basel backed the bank’s 2009 compensation plan, allowing the non-binding motion to go through.

But the large share of votes against is likely to keep Gruebel under pressure at a time when the bank needs to retain and attract key staff, including wealth management advisors needed to stop clients withdrawing money.

Gruebel said the bank expected client withdrawals to continue despite a slowdown in the first quarter.

More than $50 billion of writedowns on credit losses drove UBS to its biggest annual loss in 2008 and threatened its survival, prompting state intervention. The bank has also been the target of a high-profile U.S. tax fraud investigation.

UBS paid 3 billion Swiss francs in cash bonuses in 2009 despite annual net losses of 2.7 billion francs ($2.6 billion). But Gruebel, who did not take a bonus, defended the hefty pay checks as a way for the bank to attract and retain top staff.

Around 60 small shareholders lined up to speak at the AGM, with many expressing anger at their personal losses and at bonuses that could exceed 100 times an average person’s salary.

Chairman Kaspar Villiger, a former Swiss finance minister who joined the bank in March, said curbing variable pay would take away the banks’ “chances of recovery and survival.”

Gruebel, hired just over a year ago to turn around UBS, said earlier in the day the bank had not yet succeeded in restoring trust, especially in Switzerland.

MANAGEMENT EXONERATION IN QUESTION

While most investors turned a blind eye on the bonus issue in the light of progress made, the vote on discharging management responsibilities for 2007, the year of risky bets on subprime products, looks tight.

A rejection could theoretically pave the way for legal action against then chairman Marcel Ospel, now a hate-figure for the Swiss public, and CEO at the time, Peter Wuffli.

“Primitive societies would sacrifice their elite to appease the gods, and that’s what some Swiss would like to do to Ospel and company today,” said Peter Thorne, an analyst with Helvea. “It’s a human instinct but let’s hope were beyond that now.”

The importance of such an historic rejection would be largely symbolic, as UBS won’t seek compensation from former executives, and individual shareholder action is costly.

Shares in UBS traded 1.8 percent higher at 18.37 by 1315 GMT, up from 18.11 francs shortly after the contents of Gruebel’s speech were made public. Credit Suisse stock was up 1.7 percent and the STOXX European banks index .SX7P was 0.9 percent higher.

Top bankers have said Gruebel needs a few months of calm and an end to negative headlines to restore client confidence in the franchise fully and to stop an exodus of financial advisors.

LAWMAKERS SEEN APPROVING UBS DEAL

That will depend on the fate of a deal struck with the United States last year to end a bitter tax investigation that has shaken customers’ trust and dealt a blow to Switzerland’s traditional bank secrecy. Parliamentary approval is needed.

Chairman Kaspar Villiger said he was “very concerned” about the future of the U.S. tax deal.

The right-wing SVP, Switzerland’s biggest party, has said it will vote against the deal.

But Swiss No. 2 Social Democratic party, whose vote could make or break the deal, crucially signaled on Tuesday they would back it if the government introduced tax curbs on bonuses.

“If the Social Democrats vote in favor, the deal will go through, but they are attaching some conditions to their vote,” said the Christian Democrats spokeswoman Marianne Binder, adding her party was leaning toward approving the UBS deal.

The Liberals, the party of Finance Minister Hans-Rudolf Merz, are expected to support the UBS deal in parliament but they and the Christian Democrats alone do not have a majority.

“We will know if the numbers are sufficient in a few weeks’ time,” Fabio Abate, a liberal who heads a key parliamentary financial committee assessing the deal, told Reuters.

(Additional reporting by Jason Rhodes, Katie Reid and Martin de Sa’Pinto; editing by Will Waterman and Erica Billingham)

($1=1.051 Swiss Franc)

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Seven insider dealing suspects head for UK court

April 15, 2010 By Leave a Comment

(Reuters) – Seven men charged with running an insider trading ring with information gleaned from the London printers of Swiss bank UBS AG and UK brokerage Cazenove will appear in a British court on Wednesday.

Mitesh Shah, Neten Shah, Paresh Shah, Bijal Shah, Truptesh Patel, Ali Mustafa and Pardip Saini are alleged to have used confidential information to trade in 12 UK-listed firms over two years, including in media group Reuters during its 2007 takeover by Thomson Corp of Canada.

It is the largest insider dealing racket to be brought before court by the Financial Services Authority (FSA), which has grabbed the headlines over the last month with high-profile arrests as it cracks down on market abuse.

The hearing will be largely procedural, and the men are only expected to be asked to give their names, addresses and dates of birth before the case is referred to a higher court.

The FSA, which is seeking the extradition of an eighth suspect linked to the so-called “printer” ring, last month charged the men with 13 counts of insider dealing that it says unlawfully netted them 2.5 million pounds ($3.84 million).

Mitesh Shah has also been charged with placing spread bets to launder proceeds.

The regulator has brought three successful criminal cases against insider dealers to date. Its most high-profile victory was against Malcolm “Streaky” Calvert, a former partner at Cazenove, who was jailed for 21 months.

That conviction was closely followed by last month’s dramatic arrests of seven insider dealing suspects, including a managing director at Deutsche Bank, the head of sales trading at Exane, part-owned by France’s BNP Paribas, and a London-based trader at U.S. hedge fund Moore Capital.

($1=.6511 Pound)

(Reporting by Kirstin Ridley, editing by Will Waterman)

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Seven insider dealing suspects head for UK court

April 15, 2010 By Leave a Comment

LONDON, April 14 (Reuters) – Seven men charged with running an insider trading ring with information gleaned from the London printers of Swiss bank UBS AG (UBSN.VX)(UBS.N) and UK brokerage Cazenove (JPM.N) will appear in a British court on Wednesday.

Mitesh Shah, Neten Shah, Paresh Shah, Bijal Shah, Truptesh Patel, Ali Mustafa and Pardip Saini are alleged to have used confidential information to trade in 12 UK-listed firms over two years, including in media group Reuters during its 2007 takeover by Thomson Corp (TRI.TO)(TRI.N) of Canada.

It is the largest insider dealing racket to be brought before court by the Financial Services Authority (FSA), which has grabbed the headlines over the last month with high-profile arrests as it cracks down on market abuse.

The hearing will be largely procedural, and the men are only expected to be asked to give their names, addresses and dates of birth before the case is referred to a higher court.

The FSA, which is seeking the extradition of an eighth suspect linked to the so-called “printer” ring, last month charged the men with 13 counts of insider dealing that it says unlawfully netted them 2.5 million pounds ($3.84 million).

Mitesh Shah has also been charged with placing spread bets to launder proceeds. [ID:nLDE6300OX]

The regulator has brought three successful criminal cases against insider dealers to date. Its most high-profile victory was against Malcolm “Streaky” Calvert, a former partner at Cazenove, who was jailed for 21 months. [ID:nLDE62A1HW]

That conviction was closely followed by last month’s dramatic arrests of seven insider dealing suspects, including a managing director at Deutsche Bank (DBKGn.DE), the head of sales trading at Exane, part-owned by France’s BNP Paribas (BNPP.PA), and a London-based trader at U.S. hedge fund Moore Capital. [ID:nLDE62N1WU] ($1=.6511 Pound) (Reporting by Kirstin Ridley, editing by Will Waterman)

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UBS Pre-Announces a Q1 Pre-Tax Profit of at Least CHF 2.5 Billion

April 13, 2010 By Leave a Comment

ZURICH & BASEL, Switzerland–(Business Wire)–
Regulatory News:

In advance of its Annual General Meeting (AGM) on 14 April, UBS
(NYSE:UBS)(SWX:UBSN) announces that it expects to report a profit before tax of
at least CHF 2.5 billion for first quarter 2010.

Net new money outflows in all businesses were substantially lower than in fourth
quarter 2009. UBS estimates that net outflows in first quarter 2010 were around
CHF 8 billion for Wealth Management & Swiss Bank, CHF 7 billion for Wealth
Management Americas and CHF 3 billion for Global Asset Management.

UBS’s financial report for first quarter 2010 will be published on 4 May 2010 as
planned. The AGM material is available on www.ubs.com/agm; the speeches of
Kaspar Villiger, Chairman of the Board of Directors, and Oswald J. Grübel, Group
CEO, will be released on 14 April at 9:15 CET.

UBS

Cautionary Statement Regarding Forward-Looking Statements:

This release contains statements that constitute “forward-looking statements”.
While these statements represent UBS`s expectation concerning the development of
its business and its first quarter 2010 results, a number of factors, including
quarter-end adjustments and accounting determinations, could cause actual
results to differ materially from UBS`s expectations. In addition, our future
results could depend on other factors that we have previously indicated could
adversely affect our business and financial performance which are contained in
our past and future filings and reports, including those filed with the US
Securities and Exchange Commission (SEC). More detailed information about those
factors is set forth in documents furnished by UBS and filings made by UBS with
the SEC, including UBS`s Annual Report on Form 20-F for the year ended 31
December 2009. UBS is not under any obligation to (and expressly disclaims any
obligation to) update or alter its forward-looking statements, whether as a
result of new information, future events or otherwise.

UBS AG
Media Relations
Tel. +41-44-234 85 00
www.ubs.com

Copyright Business Wire 2010

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NY state sees “deep well” of UBS client tax cases

April 13, 2010 By Leave a Comment

(Reuters) – New York state could glean considerable sums from UBS clients who have evaded taxes by hiding money in offshore accounts once the federal government starts handing over its data to the states, a New York state tax official said.

U.S.

“That’s really a deep well and I expect we’ll be digging in that well for some time,” William Comiskey, New York State Tax Department’s Deputy Commissioner for enforcement, told Reuters by telephone on Friday.

The state, unlike the U.S. government, has an open-ended program for people who voluntarily reveal their misdeeds and some have already turned to it. “People are coming in on their own,” Comiskey said, adding data were still preliminary.

New York, like California, Florida, Connecticut and New Jersey, is home to many of the nation’s mega-rich and thus its residents could include a number of the Swiss bank’s clients.

UBS declined to comment.

Ahead of the April 15 tax filing deadline, U.S. officials began bringing a wave of suits against UBS clients.

In a separate move, New York state is expanding on analytical programs developed with International Business Machines Corp to root out tax cheats.

After reaping more than $1 billion since 2004 by uncovering “questionable” refund claims, New York state is focusing on lost sales taxes and its multibillion-dollar backlog of delinquent collections.

A new database will, for example, match the sales total reported by a national franchiser for a New York store with what that vendor reports, Comiskey said. The system will also identify “high-value” targets and recommend whether to start by contacting them or launch an examination or a criminal probe.

Until now, Comiskey’s 3,000 employees have relied on their “best gut instinct” to figure out the best approach. “What this machine would do is give you like a collective memory of what’s done well and what’s done poorly,” he said.

IBM, which hopes to sell its software and services to other states, in a statement said: “The plan optimizes the order of activities agents will take in order to maximize the total amount of debts collected while taking into consideration the case load, personnel resources, and the anticipated effectiveness of the suggested actions.”

(Reporting by Joan Gralla; Editing by Diane Craft)

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NY state sees “deep well” of UBS client tax cases

April 13, 2010 By Leave a Comment

NEW YORK, April 12 (Reuters) – New York state could glean considerable sums from UBS (UBSN.VX) (UBS.N) clients who have evaded taxes by hiding money in offshore accounts once the federal government starts handing over its data to the states, a New York state tax official said.

“That’s really a deep well and I expect we’ll be digging in that well for some time,” William Comiskey, New York State Tax Department’s Deputy Commissioner for enforcement, told Reuters by telephone on Friday.

The state, unlike the U.S. government, has an open-ended program for people who voluntarily reveal their misdeeds and some have already turned to it. “People are coming in on their own,” Comiskey said, adding data were still preliminary.

New York, like California, Florida, Connecticut and New Jersey, is home to many of the nation’s mega-rich and thus its residents could include a number of the Swiss bank’s clients.

UBS declined to comment.

Ahead of the April 15 tax filing deadline, U.S. officials began bringing a wave of suits against UBS clients. For details, please see: [ID:nN06206697]

In a separate move, New York state is expanding on analytical programs developed with International Business Machines Corp (IBM.N) to root out tax cheats.

After reaping more than $1 billion since 2004 by uncovering “questionable” refund claims, New York state is focusing on lost sales taxes and its multibillion-dollar backlog of delinquent collections.

A new database will, for example, match the sales total reported by a national franchiser for a New York store with what that vendor reports, Comiskey said. The system will also identify “high-value” targets and recommend whether to start by contacting them or launch an examination or a criminal probe.

Until now, Comiskey’s 3,000 employees have relied on their “best gut instinct” to figure out the best approach. “What this machine would do is give you like a collective memory of what’s done well and what’s done poorly,” he said.

IBM, which hopes to sell its software and services to other states, in a statement said: “The plan optimizes the order of activities agents will take in order to maximize the total amount of debts collected while taking into consideration the case load, personnel resources, and the anticipated effectiveness of the suggested actions.” (Reporting by Joan Gralla; Editing by Diane Craft)

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Advani targets Manmohan Singh on black money issue

May 2, 2009 By Leave a Comment

p
Ahmedabad, Apr 27 (ANI): Bharatiya Janata Party (BJP) Prime Ministerial candidate L K Advani has targeted Prime Minister Manmohan Singh on the issue of black money./pp
Staging a road show here on Sunday, Advani said that the Congress party now admits that black money stashed in Swiss banks is a grave problem. /pp
The important consideration is that all Congress people refused to accept and termed it as a lie has now accepted. Suddenly, I read that the Prime Minister has said if my government comes to power then in first hundred days he would bring back into country the black money stashed in Swiss banks, said Advani./pp
Earlier, Advani said if voted to power, his party would bring back the Indian money stashed in the Swiss banks./pp
The BJP will bring back the huge Indian wealth stashed in the Swiss bank and other tax havens abroad and the money will be put to use for the development of the country, he added./pp
He, however, did not indicate how he would bring back the money. /pp
Advani claimed that no government could be formed in the country without the support of either the BJP or the Congress. (ANI)/p

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