Reuters: Regulatory News: Julius Baer says too early to gauge U.S. probe cost

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Julius Baer says too early to gauge U.S. probe cost Mar 28th 2012, 08:17 ZURICH, March 28 | Wed Mar 28, 2012 4:17am EDT ZURICH, March 28 (Reuters) - Julius Baer said it remains to early to gauge how much a U.S. probe into hidden offshore accounts might ultimately cost, but it was confident it has enough financial firepower to pay a potential fine. "Julius Baer is still not in a position to take a provision at this point," the group' financial head Dieter Enkelmann told investors on Wednesday, according to slides prepared for a brokerage conference. "Julius Baer has the resources to satisfy a resolution," the bank said, echoing comments made last month. The bank will disclose a four-month business statement on May 15. The comments came as the U.S. and Switzerland appeared to be nearing a deal after months of negotiations between both governments, but also between U.S. officials and 11 banks including Baer and Credit Suisse which have come under scrutiny. In November, Credit Suisse booked 295 million francs ($326 million) as a provision against settling a U.S. investigation into its activities in helping wealthy Americans dodge tax. Negotiations between the U.S. and Swiss governments continued after U.S. prosecutors last month indicted Wegelin, Switzerland's oldest private bank. With a comfortable cash cushion, even after an up to 500 million franc share buyback and dividend this year, Julius Baer can likely afford any fine the U.S. might demand. But a charge might complicate deal-making by the bank, which has earmarked its cash pile for acquisitions, before shareholder payouts. Link this Share this Digg this Email Reprints

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