Is the traditional Swiss banking model falling apart?

Certainly heading towards a redefinition (collapse would be too harsh a word yet). It is becoming inherently more and more difficult to evade wealth from countries that chastise its citizens from evading taxes by placing their wealth overseas. Because of the how intricately inter-connected Swiss money is to the rest of the world (read: financial institutions), the Swiss have (IMHO) run out of places (and novel ideas) to hide their client's wealth. US has taken brazen steps to prosecute individuals and institutions alike (whether they are in the US or outside) as far as money laundering and tax evasion is concerned.