HIGHLIGHTS - Industry, government react to UBS' U.S. tax deal

(Reuters) - UBS AG (UBSN.VX) (UBS.N), the world's largest wealth manager in terms of assets, agreed to pay a $780 million fine and disclose information about some of its clients to settle a landmark U.S. tax case.

The case has been closely watched by the entire offshore banking industry.

Following are a selection of opinions on the agreement.

FINANCE MINISTER HANS-RUDOLF MERZ

"It became evident that if the American authorities would bring UBS to an indictment (that) .... would have also been falling on our economy."

"It is evident there has been tax fraud (at UBS)."

"Bank secrecy will stay."

SWISS BANKING REGULATOR FINMA

"FINMA welcomes the settlement reached between UBS and the U.S. authorities thereby avoiding the looming threat of formal criminal charges being filed against the bank in the USA. In order to avert the drastic consequences such charges would have for UBS and the stability of the Swiss financial system, FINMA has ordered that a limited quantity of client data be handed over to the U.S. authorities immediately.