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UPDATE 1-UBS to pay 3-5 bln Sfr to close US tax probe-paper

Sun Jun 28, 2009 6:59pm IST
 
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* Deal could be closed between July 1 and July 13-Sonntag

* SNB and FINMA putting pressure on UBS to settle-Sonntag

* NZZ am Sonntag says U.S. has names of 10,000 UBS clients

(Adds details from NZZ am Sonntag report)

ZURICH, June 28 (Reuters) - Switzerland's UBS (UBS.N: Quote, Profile, Research)(UBSN.VX: Quote, Profile, Research) is to pay 3 to 5 billion Swiss francs ($2.77-$4.62 billion) in the next two weeks to settle a U.S. tax probe into the bank, Swiss newspaper Sonntag reported on Sunday.

The U.S. government is suing UBS to get the names of 52,000 Americans who allegedly hid nearly $15 billion in assets from the taxman.

Sonntag, which said the figure of 3 to 5 billion francs had been confirmed by three independent sources, reported a deal could be signed between July 1 and July 13.

UBS said late on Thursday it plans to raise $3.5 billion of new capital -- a move welcomed by Swiss banking regulator FINMA as it strengthens UBS' capital base. [ID:nLQ421864]

Separately, Switzerland's NZZ am Sonntag reported a deal between the U.S. authorities and UBS could be close as U.S. lawyers said the Internal Revenue Service (IRS) already had the names of more than 10,000 UBS clients.  Continued...

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