Failed Prosecution of UBS Exec Shows Limits to Long Arm of US Law

By Colby Adams

If the acquittal of Raoul Weil this week was for Swiss bankers a sign of hope and for American prosecutors a signal disappointment, it was both for a single reason: the verdict showed limits the the U.S. Justice Department's ability to punish foreign bankers. U.S. prosecutors accused the former chairman of UBS AG's global wealth management division in 2008 of orchestrating the bank's collusion with American tax dodgers—an allegation that jurors rejected Tuesday. Weil, who was arrested in November, is the highest-ranking banker to face criminal charges as part of a broad U.S. crackdown on banks that facilitate tax evasion....