Sub-prime hit investment bank UBS has today announced it is to close its Swiss private banking services to US clients following continued probes from US authorities over the secrecy policies implemented by the bank, in a move that looks set to further dent short term profitability.

The Switzerland based investment bank has made the announcement following growing concerns by US regulators as to the way in which offshore bank accounts are marketed, ad the implications of this for the wider economy.  Whilst UBS has not disclosed how much it earns from its private banking activities, it is widely thought that its margins are much greater than many of its competitors in this area, and thus the closure of the operation will no doubt have a knock on effect [Click here for more by Banking Times]

 January 21, 2008