ZURICH, May 29 (Reuters) - The Swiss government agreed onWednesday to create a legal basis that will allow its banks tosettle investigations by U.S. authorities into their role inhelping wealthy Americans evade billions of dollars in tax.
After a regular cabinet meeting, the finance department saidthe government is proposing legislation to be rushed throughparliament in the summer session in June that would allow banksto agree settlements with the U.S. Department of Justice.
"If banks were not authorised to cooperate with the U.S.authorities, the initiation of further criminal investigationsor charges concerning banking institutions could not be ruledout," the department said in a statement.
The country's biggest bank UBS was forced in 2009to pay a fine of $780 million and hand over the names of morethan 4,000 clients, delivering the U.S. authorities informationthat allowed them to then pursue other Swiss banks.
The banks under formal investigation include Credit Suisse, Julius Baer, British bank HSBC's Swiss arm, privately-held Pictet in Geneva, and smaller playerssuch as LLB's Swiss arm as well as localgovernment-backed Zuercher Kantonalbank and Basler Kantonalbank.
Switzerland's oldest private bank, Wegelin & Co, said inJanuary it was closing down after pleading guilty to helpingAmericans evade taxes, paying a fine of nearly $58 million.