Credit Suisse

As you may have heard, yesterday Credit Suisse paid a $2.6 billion fine and pleaded guilty to doing the thing that Swiss banks were put on this earth to do– helping American clients avoid paying taxes by hiding their assets from the IRS. Now, some people might worry that copping to engaging in years of highly illegal activity would cause clients and counterparties to look at the bank differently. In fact, CEO Brady Dougan was one of those people, which caused him to get on the horn and conduct a small poll to see if anyone would have trouble doing business with Credit Suisse moving forward. The great news is that apparently no one gives a shit. Read more »

In related news, the bank is about to plead guilty to helping a whole lot of people avoid paying taxes and fork over $2.5 billion1 to the U.S. government. So, it’s a big day for the Swiss. Read more »

  • 12 May 2014 at 1:35 PM
  • Banks

BNP Paribas, Credit Suisse Have A Favor To Ask

Preet Bharara & co. are super pissed at BNP Paribas and Credit Suisse. Guilty-plea-to-criminal-charges pissed. But the banks can’t go back in time and not blithely do business with the Axis of Evil-plus, or help Americans minimize the size of that last number on their 1040s, respectively. And until they get their hands on a time machine allowing them to do a better job of covering up those (alleged!) crimes, they’ll resort to a strategy that’s actually available to them: begging. Read more »

Apparently yesterday’s statement before a Senate subcommittee–wherein Dougan said that neither he nor Credit Suisse executives knew tax evasion was going on, but would nevertheless take responsibility for the few bad apples that had to ruin things for the rest of the group– was not satisfactory, particularly the part where Dougan claimed to just to have no knowledge of the practice. In order to move forward, the group needs to hear Dougan 1. Apologize for the original apology and 2. Say he knew it was going on the whole time, that he weighed in on the best way to hide assets, and maybe offer up pictures of himself on the beach thumbing through a copy of the Credit Suisse Tax Evasion handbook and sipping a pina colada. Follow through on one and two, and all will be forgiven. Read more »

“Some Swiss-based private bankers went to great lengths to disguise their bad conduct from Credit Suisse executive management,” Dougan said at a Senate subcommittee hearing in Washington today. “While that employee misconduct violated our policies, and was unknown to our executive management, we accept responsibility for and deeply regret these employees’ actions.” [Bloomberg]

Group AG Chief Executive Brady Dougan is scheduled to testify Wednesday at a U.S. Senate subcommittee hearing on offshore tax evasion, a move that comes as the Swiss bank seeks to settle allegations it helped Americans evade their obligations. According to a witness list made public on Monday, Robert Shafir and Hans-Ulrich Meister, who jointly run Credit Suisse’s private banking and wealth management division, as well as Romeo Cerutti, the bank’s general counsel, will join Mr. Dougan at the hearing. A separate panel will include Kathryn Keneally, U.S. assistant attorney general for the Justice Department’s tax division. The hearing will focus on “efforts to hold Swiss banks and their U.S. clients accountable for unpaid taxes on billions of dollars in hidden assets,” according to a press release from the U.S. Senate Permanent Subcommittee on Investigations, which is conducting the hearing. [WSJ]

Multiply that by the 80 years since Switzerland passed its Banking Law of 1934, and you’ve got your settlement. Read more »