Fascinating story from the Washington Post:

NOT NORMALLY a hotbed of anti-Americanism -- or of any other political sentiment, for that matter -- Switzerland is experiencing an unusually exciting relationship with the United States right now. At issue: U.S. demands that the Swiss help root out a massive alleged conspiracy in which the Zurich-based bank UBS, Switzerland's largest, helped wealthy Americans avoid taxes through secret accounts.

If U.S. authorities succeed, they will have closed a big loophole in tax enforcement. But Swiss banking secrecy could be finished -- and, with it, the competitive advantage of the Swiss banking industry. Not surprisingly, Swiss public opinion is annoyed, and the Swiss government is pushing back
diplomatically.

What you don't often hear the Swiss say is that UBS might have been bankrupt today if not for a bailout from -- you guessed it -- the United States. Last fall, the bank was facing $60 billion in losses on mortgage-backed securities. The Swiss National Bank, Switzerland's central bank, agreed to take the toxic assets off UBS's hands. To do that, however, the SNB needed $54 billion — which it got from the Federal Reserve in exchange for an equivalent amount of Swiss francs. This "currency swap" between the two central banks amounted to more than 10 percent of Swiss GDP.

In short, all things considered, Uncle Sam has been a pretty good sport about UBS. The denunciations of U.S. policy in Switzerland simply show that no good deed goes unpunished. Well, retaliation can be a two-way street. The Obama administration hasn't used the Fed's lifeline as leverage on the tax issue, and no doubt there are good and high-minded reasons not to do so.

Still, as bilateral negotiations proceed, it might be worth a quiet mention or two.

Sorry to quote so much WSJ, but this is one that needs to be told. Not least it shows just how ill-equipped tax havens — all tax havens / secrecy jurisdictions are to deal with the monsters they have created.