Switzerland Justice Minister warns UBS Bank could collapse

In an interview over the weekend, the Swiss Justice Minister said the country's top bank UBS could collapse if the tax fraud investigation between the US and Switzerland unravels.

On Sunday, Switzerland Justice Minister Eveline Widmer-Schlumpf told Le Matin Dimanche newspaper in an interview that the country’s top bank UBS could fail and collapse if the sensitive talks continue regarding high-profile tax fraud investigation, according to AFP. Over the summer, both sides negotiated an agreement that would allow the US tax police to receive more than 4,500 UBS account holders. However, a Swiss court put the deal in jeopardy and the public have accused the government of failing to protect UBS clients. “The actions of UBS in the United States are very problematic. Not just because they are punishable but also because they threaten all of the bank's activities. The Swiss economy and the job market would suffer on a major scale if UBS fails as a result of its license being revoked in the United States.” Reuters reports that UBS AG fell to a six month low on Monday after the Justice Minister announced that dire warning. UBS is scheduled to report its annual results next week.