An investigation by the Swiss Federal Banking Commission has found pay structures at UBS played a part in the dispute between the bank and the US Department of Justice over tax evasion, which led to a $780m settlement last night. The commission has banned UBS from engaging in cross border business with US private clients in the wake of its 2008 decision to withdraw. UBS will hand details on certain clients to the US. It has struck the deal, even though its former wealth chief Raoul Weil still remains a fugitive from US justice.

The commission has told the UBS to supervise better the legal and reputation risks to which it is exposed in cross-border business. The Swiss Financial Market Supervisory Authority said it will "monitor the way in which the order is put into practice."