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Abstract
Swiss-headquartered UBS suffered more than many of its competitors during recent years. Its troubles started before the financial crisis, when a whistleblower claimed the bank was helping some US clients evade tax. The case became public in May 2008 when UBS disclosed it was under investigation by Swiss and US authorities. During the investigation the US Internal Revenue Service (IRS) filed criminal, regulatory and civil proceedings against UBS. The tax investigation was widely publicized, negatively impacting the bank's reputation and client relationships. Stuart Hendel, global head of prime brokerage, admits the tax case coupled with the financial crisis dramatically affected the bank, historically a significant player in the hedge fund industry as an asset manager, an investor and a service provider. They're positioning their prime brokerage service not as a standalone business but as a component part of their overall hedge fund offering, he adds.