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Please begin with an informative title:

Swiss bank Weglin is going out of business after it pays the US a $58M fine for helping wealthy Americans evade taxes. The handling of this situation is emblematic of how the Obama administration handles problems in our financial system.

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You must enter an Intro for your Diary Entry between 300 and 1150 characters long (that's approximately 50-175 words without any html or formatting markup).

When companies are engaging in illegal activity, the US government begins with a fine and deferred prosecution agreement with a major offender. In the case of Swiss tax evasion, the US levied a $780M fine against UBS in 2009 as part of a deferred prosecution agreement. That action resulted in most Swiss banks stopping this activity - Weglin chose to fill the void:

Other banks have in recent years moved to prevent US citizens from opening offshore accounts.

US Attorney Preet Bharara said: "The willfully and aggressively jumped in to fill a void that was left when other Swiss banks abandoned the practice due to pressure from US law enforcement."

Additionally, three Weglin bankers are facing criminal charges.

I think this graduated approach to dealing with illegal action by financial institutions balances three desires of the Obama administration:  to cost-effectively recover damages, to disincentivize the illegal behavior in the future, and to prevent costly shocks to the financial system. To those ends, I think our government is doing a decent job.

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