The bankers faced a defacto coalition of interests that credibly threatened the lucrative Swiss share of the public finance business in states such as California and New York. They faced the divestiture by huge U.S. pension funds of
stock in Swiss banks as well as in all Swiss-based companies; a delay in the merger between Swiss Bank and UBS over the “character fitness” license vital to doing business in New York; expensive and intrusive lawsuits brought by some of the most formidable U.S. class-action attorneys; and the wider displeasure of the U.S. government, which had become active in brokering a settlement.