Credit Suisse hunted by US authorities
(19 July 2011 – Global) Credit Suisse Group is being chased by United States prosecutors as part of an escalating tax-evasion probe.
The move significantly raises the stakes for Zurich-based Credit Suisse, one of the world's largest banks, because 'targets' of criminal probes are those under direct scrutiny from grand juries that consider whether to hand up indictments. No major US bank has ever survived criminal charges.
Credit Suisse disclosed that the US Justice Department had notified the bank that it was a formal target of a criminal investigation into how Swiss financial institutions allegedly helped US citizens avoid paying US income tax.
The government's move could accelerate settlement talks between the US and Swiss governments that could cap an historic chapter in secretive Swiss banking.
Credit Suisse, in disclosing the letter, said it would continue to co-operate with US investigators while adhering to Swiss legal obligations. The bank previously disclosed it had been co-operating with US requests for information. A Justice Department spokeswoman declined to comment.
While the Swiss government is negotiating the fine, aimed at freeing any Swiss bank from future US prosecution, some banks have baulked at how the payment is divided and whether every Swiss bank should contribute, according to the people familiar with the situation.
Credit Suisse disclosed that the US Justice Department had notified the bank that it was a formal target of a criminal investigation into how Swiss financial institutions allegedly helped US citizens avoid paying US income tax.
The government's move could accelerate settlement talks between the US and Swiss governments that could cap an historic chapter in secretive Swiss banking.
Credit Suisse, in disclosing the letter, said it would continue to co-operate with US investigators while adhering to Swiss legal obligations. The bank previously disclosed it had been co-operating with US requests for information. A Justice Department spokeswoman declined to comment.
While the Swiss government is negotiating the fine, aimed at freeing any Swiss bank from future US prosecution, some banks have baulked at how the payment is divided and whether every Swiss bank should contribute, according to the people familiar with the situation.
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