Swiss financial giant UBS AG is planning to separate its investment bank and incorporate it outside of Switzerland in an effort to placate regulators there who want to prevent another bailout should the bank fall on hard times as it did in 2008, said people familiar with the matter, The Wall Street Journal reported. UBS is considering incorporating its investment bank, which lost billions during the financial crisis and was rescued by the Swiss central bank, in London, New York or Singapore, where it would have its own capital and be overseen by local regulators.

Switzerland's banking regulator Tuesday said regulation aimed at limiting the threat that UBS AG and Credit Suisse Group pose to Switzerland's economy should they collapse needs to include measures for the orderly liquidation of part of a troubled bank's operations in a crisis, Dow Jones Daily Bankruptcy Review reported. The move could have implications for UBS's and Credit Suisse's structure because it represents more measures after the so-called too-big-to-fail draft law, which the government wants to send to parliament before April 24 when a consultation period ends this week.

Credit Suisse Group is selling a $2.8 billion portfolio of soured commercial-property loans to Apollo Management LP for $1.2 billion, marking one of the largest bank sales of distressed real estate loans since the downturn, Dow Jones Daily Bankruptcy Review reported today. The properties backed by the loans include apartment buildings in Germany and hotels in Denmark, Sweden and France, many of them of lower quality and in hard-hit locales.

The Swiss bank that leads a lender group owed $300 million by Tamarack Resort says liquidating the central Idaho vacation getaway is the best way to recoup a fraction of their investment, the Associated Press reported. Credit Suisse Group asked U.S. Bankruptcy Judge Terry Myers this week to set the stage for the final sale of Tamarack assets, either under a U.S. trustee or a state court judge's supervision. Tamarack owner Jean-Pierre Boespflug, trying desperately to arrange a sale, said Wednesday he plans to oppose the motion.

A Kazakhstan bank's bid to use the U.S. bankruptcy court to halt an overseas legal proceeding could drag the court into disputes in which the U.S. itself has little at stake, Dow Jones Daily Bankruptcy Review reported. Kazakhstan's JSC BTA Bank says the U.S. bankruptcy court's decision to grant it Chapter 15 protection in the U.S. after it underwent restructuring in its home country last year extended a key benefit of U.S. bankruptcy law: the automatic stay that halts legal action against a debtor company.

Switzerland suffered the highest rise in bankruptcy proceedings in ten years in 2009, according to the Federal Statistics Office, swissinfo.ch reported. The number of proceedings opened against businesses or individuals rose to around 11,600, up eight per cent on 2008 - a “marked increase”, the office said on Monday. In addition, 2.5 million formal notices to pay were issued, just over two per cent more than in the previous year. All regions saw a rise in bankruptcies, but Italian-speaking Ticino, financial centre Zurich and central Switzerland suffered the largest increases.

UBS and Credit Suisse should change their structure to allow their break-up in the case of an insolvency to limit the risks for the Swiss economy, a government commission said on Thursday, Reuters reported. In an interim report on the too-big-to-fail issue, the commission urged lawmakers to enable regulators to force the banks if necessary to adopt a structure that allowed to keep key businesses going in case of an insolvency.

German officials said they were weighing fresh offers from informants after deciding last week to pay €2.5 million ($3.4 million) for the names of suspected tax evaders in what is rapidly evolving into a broad attack on Switzerland's system of banking secrecy, The Wall Street Journal reported. Over the past week, German officials have launched a tactical and rhetorical assault on Swiss banking, a strategy that appears to be aimed at undermining both Switzerland's tradition of secrecy and its pre-eminence as a tax refuge.

The Swiss government will on Wednesday reveal how it will rescue a decisive deal with Washington about bank secrecy after the country’s highest administrative court derailed the agreement last week, the Financial Times reported. Bern agreed in August that UBS should divulge the names of 4,450 Americans with offshore accounts. Bern had been obliged to intervene after escalating US legal pressure threatened to trigger a crisis of confidence in the bank.

The Dutch financial services group ING, which came close to collapse last year, said Friday that this month it would repay half of the €10 billion provided by the government during the height of the financial crisis, The New York Times reported. The bank joins other lenders in Europe and the United States, like UBS of Switzerland and Bank of America, in repaying at least some government funds earlier than anticipated. The Dutch state injected the funds into ING in October 2008 by purchasing nonvoting preferred shares.