U.S. Cuts Deal With Swiss Bank

(CN) - Switzerland and the United States have agreed in principle to settle the details of a messy case that seeks to force Swiss banking giant UBS to release the names of 52,000 wealthy Americans suspected of tax evasion. A trial scheduled to start today (Monday) will be canceled, and a final deal is expected by Aug. 7.

The New York Times described the settlement on Friday, citing Miami U.S. District Judge Alan S. Gold and prosecutor Stewart Gibson.

UBS paid $780 million in February to settle criminal charges alleging that it helped rich Americans evade taxes on nearly $20 billion hidden in offshore accounts.

The Swiss banking system has been damaged by the allegations and Swiss and U.S diplomatic relations are also suffering.

The UBS share price rose on news of the settlement.

Secretary of State Hillary Clinton met with Swiss Foreign Minister Micheline Calmy-Rey in Washington on Friday to discuss the matter.

The U.S. pursuit of UBS is seen as a warning to other international money managers that deal with wealthy American clients, according to The Wall Street Journal.

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