UBS ends offshore banking for U.S. clients

UBS has decided to wind down its Switzerland-based private banking services for U.S. clients, the Financial Times reports. Compliance concerns (including money laundering and tax evasion) drove the move, apparently.

Blogger's note: Globalization has been criticized as possibly letting financial services firms arbitrage regulators by seeking out the weakest oversight. This move by UBS strikes me as being the opposite—the bank has been forced to end a questionable practice or face reputational risk. It can't take that risk—it has too much at stake worldwide.