In the wake of a court decision that blocks the Swiss government from handing over the details of accounts belonging to U.S. tax dodgers, officials in Bern said they will seek to rescue a historic tax settlement with the U.S.

On Friday, a client of UBS AG client won an appeal to a Swiss court to prevent Swiss authorities from handing over her account data to U.S. authorities. The decision was a setback for a pact that the U.S. and Switzerland had struck in August to resolve accusations by the U.S. that UBS had deliberately helped thousands of Americans hide money from the tax man.