clients suected of evading taxeby hiding money in secret u.b.s. accounts. the swiss cabinet won'release details until a deal is reacd. on wednesday, bo sides will update a fedal judge on their on negotiations. >> susie: tonight's commentor wants regulators to crease the capitarequirements of banks. he's richard dekaser, esident of woodley park resech and the formerhief economist of national city corporation. >>eporter: most people would agree that it makes sense toet aside money during good timeto weather e bad ones. that why 90% of state governments have rainy day fds and 60% of american falies save some of their ince. but bank regulation nes to do more in this regard. as things now stand, ban are requed to hold capital at around 10% of sets to protect depositors, taxpayers and investors from their insolvey. but whenhe economy turns down d losses increase, capital disappears. en, banks have two options t maintain their capal ratio: ise more capital or reduce assets. cause times are tough and investors are skitti, raising additional capal is expensive when

secret. others are people who have gotten caught up in this-- most notably a former u.b.s.private banker named bradlee berkenfeld who was indicted and has cooperated extensively with the government and its investigation. >> ifill: is there a distinction between the tax-shielded money that in these accounts which was earned legally, and just not paid taxes on, and tax-shielded money which was laundered or was drug money? is that being treated differently? >> you know, there's not, and really the conversations haven't really focused on that distinction had is interesting because previously when we thought of the goings on-- the negative going on at swiss banks we think of drug running, money launderer, gun running, et cetera. some of these accounts may, indeed, involve criminal matters but we don't know, and it certainly hasn't been a point of discussion at the justice department and the iious. >> ifill: are any of these account holders being investigated independent of this agreement for tax evasion or any other crimes? >> absolutely yes. the justice department is investigat