This bit of news is interesting – UBS Bank could collapse if talks with the US over tax fraud fall through.

“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,” Eveline Widmer-Schlumpf told Le Matin Dimanche newspaper.

“The Swiss economy and the job market would suffer on a major scale if UBS fails as a result of its licence being revoked in the United States,” she said.

It sounds like the U.S. is considering pulling the ability of UBS to act as a bank within the United States due to tax fraud / tax evasion, which would trigger the bank collapse and not due to current bank solvency issues.

I find it hard to believe U.S. regulators would allow such a thing to happen, instead opting for the fine route…

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3. FDIC running out of funding? Update on the banking collapse.
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