Reportedly, Swiss bank UBS (NYSE: UBS) "systemically and deliberately" violated U.S. law by dispatching private bankers in America to recruit citizens interested in evading taxes.

UBS is now being forced by the Justice Department to reveal the identities of the 52,000 clients. This filing asks that the U.S. District Judge (Alan S. Gold) hold UBS accountable for conducting years of illegal business in the U.S. This business reportedly earned UBS more than $100 million in fees, while costing the U.S. "hundreds of millions" of dollars in unpaid taxes.

Analyst Upgrades

• Barclays upgraded Anglo American (NASDAQ: AAUK) to Overweight from Equal Weight based on a potentially higher bid from Xstrata (OTC: XSRAY) or a white night willing to pay a premium for the group, higher copper prices, and improving operating performance.
• Janney Montgomery upgraded Chiquita Brands (NYSE: CQB) to Buy from Neutral citing improved bagged salad margins, strong free cash flow, solid banana trends, and valuation. The firm has a $13 target on the stock.
• Wunderlich upgraded Legacy Reserves (NASDAQ: LGCY) to Buy from Hold due to the firm's belief that the back of the crude board is still very cheap, the firm's increased distribution outlook, and the movement of the stock after the discontinuation of the company's talks with Apollo.
• Deutsche Bank (NYSE: DB) was upgraded to Buy from Neutral at UBS.
• UBS (NYSE: UBS) was upgraded to Outperform from Neutral at Credit Suisse.
• Illinois Tool Works (NYSE: ITW) was upgraded to Outperform from Market Perform at Wachovia.

Suntech Power Holdings (NYSE: STP) has priced its follow-on public offering at $12.50 per share. The company will be issuing 20 million American Depositary Shares to raise a total of $250 million. The stock is being issued under an existing shelf registration filing.

Underwriters UBS (NYSE: UBS), Goldman Sachs (NYSE: GS) and Deutsche Bank (NYSE: DB) have an option to purchase up to 3 million to cover any over-allotment.

In yesterday's online edition of The Wall Street Journal, it was reported that MBIA (NYSE: MBI) is facing lawsuits from a group of 18 different financial institutions. The lawsuit was filed in New York State court and includes the likes of J.P. Morgan Chase (NYSE: JPM), Bank of America (NYSE: BAC), Morgan Stanley (NYSE: MS), and UBS (NYSE: UBS).

These banks are claiming that the way MBIA split its municipal bond insurance business earlier this year was "an unlawful attempt to escape" its contractual obligations to cover losses from mortgage securities. In addition to the split earlier this year, MBIA shifted $5 billion to a municipal bond insurance company.

Here are some highlights from this past week's earnings coverage from BloggingStocks:

• Activision Blizzard Inc. (NASDAQ: ATVI) Q1 results beat expectations and raised its guidance.
• Alpha Natural Resources Inc. (NYSE: ANR) shares surged after the it reported strong Q1 earnings.
• Archer Daniels Midland Co. (NYSE: ADM) just missed swinging to a loss due to to hefty investment losses.
• CBS Corp. (NYSE: CBS) surprised with a net loss in Q1 as revenue and cash flow declined.
• Chesapeake Energy Corp. (NYSE: CHK) shares fell after it reported disappointing results for the quarter.

Here are some highlights from this past week's earnings coverage from BloggingStocks:

• Abbott Laboratories (NYSE: ABT) Q1 profit edged past expectations despite lower sales of Humira.
• AMR Corp. (NYSE: AMR) posted a smaller-than-expected Q1 loss, sending shares sharply higher.
• Baxter International Inc. (NYSE: BAX) reported better-than-expected Q1 earnings, sending share higher.
• BP (NYSE: BP) and other oil companies were downgraded due to higher environmental costs.
• Charles Schwab Corp. (NASDAQ: SCHW) Q1 earnings declined but still topped analysts' expectations.
• Chevron Corp. (NYSE: CVX) said Q1 earnings would be lower due to a weaker dollar and lower oil prices.

If I could be reincarnated, I would come back as a banker. The world revolves around them. They get multi-million dollar bonuses, live in Fifth Avenue apartments, own spreads in Greenwich, CT, and summer in seaside cottages in the Hamptons. When their money-making schemes go awry, taxpayers bail them out -- and even pay their bonuses!

But we already knew that. What I did not know, until I read this, is that banks also get the kid glove treatment from the Internal Revenue Service (IRS) when it comes to audits. In fiscal 2008, the financial services industry got audited at a 9% rate -- less than half the 19% audit rate for all other industries that fiscal year.

Is banking getting off easy because it's so much more virtuous? Not at all. In fact, recent IRS audits reveal that banks under-report taxable income at a far higher rate than IRS audits of the four other industry groups. And this doesn't even include Swiss banks like UBS (NYSE: UBS) which have been helping clients dodge U.S. taxes for years -- it just paid $780 million in fines for those sins.

Well, here's the thing: Migros has been a smashing success. How is that possible? Here's a tiny bank in a supermarket. Its primary role is to service store customers. The bank does not pay top bankers any bonuses. Nor does it engage in high-risk international investments.

Instead, it has a simple (some people might call it outmoded) business model. It collects deposits from customers and then turns them into low-risk loans. With this approach, Migros deposits surged SFr 2.6 billion to SFr 24 billion, even as customers, worried about fallout from the financial crisis, were pulling their money out of leading Swiss banks like UBS AG (NYSE: UBS).

• JMP Securities upgraded CB Richard Ellis (NYSE: CBG) to Outperform from Market Perform. The analyst believes the new Public-Private Investment Program will create liquidity, which will result in some degree of activity. Shares were also upgraded at JP Morgan to Overweight from Neutral.
  
• Thomas Weisel upgraded Linear Tech (NASDAQ: LLTC) to Overweight from Market Weight due to stabilizing business and favorable end market exposure.
  
• UBS upgraded PepsiCo (NYSE: PEP) to Buy from Neutral and raised its target to $60 from $57 due to moderating input costs, earnings and investment flexibility, improving U.S. beverage business, and leverage from its market share in food.
• Tibco (NASDAQ: TIBX) was raised to Buy from Neutral at Goldman.
  
• Philips Electronics (NYSE: PHG) was upgraded at ING Group to Buy from Hold.
  
• Hospira (NYSE: HSP) was upgraded to Outperform from Market Perform at Leerink.

After days of rallying, the market decided that bank stocks had gone much too far. With no first quarter earnings out, the fact is that the current quarter could still be tough. Financial shares could still reset lower. The market reacted accordingly.

The unofficial numbers for the day broke out like this:

Dow 7,278.38 -122.42 (-1.65%)
S&P 500 768.54 -15.50 (-1.98%)
Nasdaq 1,457.27 -26.21 (-1.77%)

TOP ANALYST CALLS

Here are some highlights from this past week's earnings coverage from BloggingStocks:

• Aeropostale Inc. (NYSE: ARO) reported strong Q4 numbers as same-store sales increased.
• American Eagle Outfitters Inc. (NYSE: AEO) same-store sales fell in Q4 but earnings met expectations.
• ArcSight Inc. (NASDAQ: ARST) continued its growth in Q3 and it forecast continued growth.
• Buckle Inc. (NYSE: BKE) posted a better-than-expected Q4 profit and continued same-store sales growth.
• Citigroup Inc. (NYSE: C) CEO said in a memo that it earned a profit in the first two months of this quarter.
• Dick's Sporting Goods Inc. (NYSE: DKS) beat Q4 earnings estimates but same-store sales fell.