Credit Suisse has plead guilty to one count of conspiring to aid tax evasion. Erin Davis, senior equity analyst at Morningstar, weighs in on the significance of the move and reveals whether she believes the company's business will be negatively impacted.
Credit Suisse is in talks with the U.S. Justice Department to pay as much as $1.6 billion to resolve an investigation into the bank's role in helping Americans evade U.S. taxes, a person familiar with the matter said. Prosecutors have also been pushing for the bank to plead guilty in connection with the probe, two people with knowledge of the talks said. A spokesman for Credit Suisse declined comment.
Credit Suisse has been convicted of a felony. It has pleaded guilty to “conspiring to aid tax evasion” and been fined $2.6bn. The punishment meted out to Credit Suisse seems strangely inappropriate. Firstly, the fine levied is tiny for a bank the size of Credit Suisse, so why is the fine so small? Consider for a moment what would happen if the US revoked Credit Suisse’s banking license.
Pressure on Credit Suisse boss Brady Dougan to quit shows no signs of abating in Switzerland following this week's $2.5 billion settlement with the U.S. authorities over charges that it helped Americans evade taxes by hiding their assets in secret bank accounts. The Swiss bank's board has backed the American chief executive over the deal, under which Credit Suisse pleaded guilty to criminal charges but held onto its New York license and its legally protected client data.
Switzerland's finance minister says her government is satisfied with the U.S. deal that will allow Credit Suisse, the nation's second-biggest bank, to put its criminal investigation behind it but notes other banks remain in the crosshairs. Finance Minister Eveline Widmer-Schlumpf says banks including the regional cantonal lenders remain in talks to resolve charges of misconduct as part of a U.S. crackdown on foreign banks believed to be helping American tax cheats. U.S.
A person familiar with the matter said on Monday,Credit Suisse Group AG is in talks with the U.S. Justice Department to pay as much as $1.6 billion to resolve an investigation into the bank's role in helping Americans evade U.S. taxes. The penalty could be roughly twice the amount paid by UBS AG, which settled similar charges in 2009 for $780 million and agreed to identify its customers.