Looks Like Someone Is Finally Listening to Us.

Since we're in the midst of a slow day, we're pulling one from Scoping. Just a few more opining on the whole delay in the IRS/UBS trial that was supposed start today.

Judge Alan Gold is giving the parties three weeks to make nice and on July 29 will hold a conference call where the parties will either announce the number of Toblerones to be transferred or whether the parties will battle it out.

The delay kinda-sorta indicates that UBS wants to settle but not because it would be painless. The whole sitch has not been good for You and Us, as if any settlement is reached, they're likely going to be forking over a metric asston of cash. And since the IRS will likely to argue that these individuals (read: not poor people) haven't been paying taxes on their offshore assets for eternity, the payment will similar, if not greater than the $780 million paid by UBS earlier this year.

Then there have been the reports of the bank losing business because of the negative exposure and there's the whole, we're a Swiss Bank, we're super-secret image. Yeah, probably not so much any more.

On top of all that, the other trub that UBS will have is that the U.S. case is just the beginning. Other governments want their rich clients with offshore accounts paying back taxes too. What happens with in the U.S. will ultimately serve as a jumping off point for other courts to rule in a similar fashion.

So this all adds up to a lose-lose-lose-lose-lose for the Swiss Bank. So this is where we have to say: The "You and Us" talk better stop, UBS, cuz unless you got a turd in your pocket, it's just going to be YOU on this one.

U.S. trial delay seen bringing UBS tax deal nearer [Reuters]

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Judge Wants Hints to How Ugly the IRS Will Make this Naming Names Thing

We're beating this drum until something gets accomplished:

THE SOLUTION IS TOBLERONES.

The judge in the UBS/IRS case now wants to know, just for the sake of argument, how down and dirty the IRS will get if he rules in the Service's favor and UBS doesn't name names.

Alan Gold, the US district judge presiding over the case, late on Wednesday gave the US government until midday US time on Sunday to clarify whether it might go as far as seizing assets of the bank’s US operations, or forcing them into receivership, should the court rule against UBS and the bank not comply.

Gold also was curious to know if the Feds had considered double-secret probation and counsel replied that "all options are on the table".

It's becoming apparent that the Swiss are getting tired of "you're aiding tax evaders" talk out of DC because now they're pulling the pot/kettle card:

Swiss critics have accused the US of hyprocrisy in moralising on tax evasion. Many have noted the irony that next week’s case will be heard in Miami, an established offshore centre for the – possibly undeclared – assets of thousands of rich South Americans.

The IRS replied awkwardly with, "SO? SO? It's not that ironic"

Judge calls on US to clarify position on UBS [FT.com] Sphere: Related Content

UBS May Not be Naming Names

Because, seriously, who can resist the sexiness of a Swiss bank?

The Department of Justice is considering dropping its civil case against the super-secret behemoth bank, that would possibly force UBS to disclose 52,000 names of American clients. Considering the history of the Swiss banking system, this would be a little awk.

The trial is still on schedule for July 13th, so don't get too comfortable, rich folk with shady means of income.

No comment from either UBS or the DOJ but this isn't really anything that a pallet full of Toblerones couldn't solve.

Justice Deptartment may drop UBS tax evasion case: report [Reuters] Sphere: Related Content