Apparently, an indictment of the bank is still a possibility:

If the bank fails to convince a federal judge that it shouldn’t turn over the names to the IRS, the court can fine UBS for civil contempt. The Justice Department, under the deferred- prosecution agreement, could seek criminal indictment of the bank, says tax attorney Robert Fink of Kostelanetz & Fink LLP in New York.

An indictment of a bank can be lethal if customers doubt its stability.

“That could be the most dangerous thing of all for UBS,” says Fink, whose firm represents 200 UBS clients. “UBS is on the road to destruction in the U.S. They’re totally whipsawed. If they’re indicted, they will be convicted. Eventually, they will lose their banking license.”

This is a bank that has amassed $50 (that’s five-oh) billion in writedowns since 2007, mostly on U.S. mortgage debt.

What can we say but, go, IRS, go. Good story here.

Dean Starkman Dean Starkman runs The Audit, CJR's business section, and is the author of The Watchdog That Didn't Bark: The Financial Crisis and the Disappearance of Investigative Journalism (Columbia University Press, January 2014).

Follow Dean on Twitter: @deanstarkman.