Banking Giant UBS To Pay $780 Million In Tax Case

WASHINGTON (AP) — Swiss-based banking giant UBS has agreed to pay $780 million to settle allegations it conspired to defraud the U.S. government of taxes owed by big clients.

As part of the deal struck in federal court in Fort Lauderdale, Fla., UBS has made the unprecedented step of agreeing to immediately turn over to the U.S. government account information for their U.S. customers of the bank's cross-border business.

That means federal authorities have struck a big crack in Switzerland's vaunted bank secrecy laws.

UBS will pay $780 million in fines, penalties, interest and restitution for conspiring to create sham accounts to hide the assets of United States clients from the U.S. government.