After months of negotiation it looks  like UBS, the largest Swiss bank, has finally agreed with the Federal  government to give up the names of over 52,000 Americans who are suspect  of using their accounts to illegally avoid paying their taxes. 
 
According to Bloomberg.com, “UBS agreed to an unprecedented breach of  Swiss secrecy laws by giving the Internal Revenue Service data on more  than 250 accounts. Switzerland, which supports UBS in the case, said  the U.S. push for data on 52,000 other accounts is a threat to its sovereignty  and would force the bank to violate Swiss criminal laws protecting bank  secrecy.
“Over the last week or so, there have  been high-level officials from the two governments meeting, trying to  narrow the issues and bring about a resolution,” Stuart Gibson, a  Justice Department senior litigation counsel, told U.S. District Judge  Alan Gold today at a hearing.
UBS attorney Eugene Stearns said the  bank learned on July 11 about discussions between the Swiss and U.S.  governments.
“We are anxious for the governments  of these two democracies to resolve these issues,” said Stearns. “It’s  a minefield trying to resolve these issues.”
Lynnley Browning of the New York Times also weighed in on the latest developments noting  that “the dispute between UBS and the United States has escalated  into a diplomatic drama and has threatened to pierce the veil of Swiss  financial secrecy. UBS and the Swiss government have said they will  not disclose client names, even if ordered by a judge, because doing  so would violate Swiss laws governing financial secrecy and subject  UBS executives to prosecution in Switzerland.”
In February, the Internal Revenue Service,  backed by the Justice Department, sued UBS, the world’s largest private  bank and a pillar of the Swiss economy, to force it to disclose the  names of 52,000 wealthy American clients suspected of tax evasion through  UBS’s offshore private banking division.