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Credit Suisse says it’s now the object of an investigation by the DOJ related to offshore tax havens.The investigation seems related to offshore tax havens.
The bank said it’s the subject of “a broader industry inquiry” into cross-border services that its private banking arm provided to American clients, which we assume speaks to a similar charges against UBS.
Really, this isn’t much of a surprise.
When four Credit Suisse bankers were indicted earlier this year, the news read:
In the fall of 2008, Credit Suisse began exiting the U.S. cross-border banking business, and the bankers advised clients to transfer their accounts to other Swiss banks that did not operate internationally and were therefore not subject to anything but Swiss law…
And from the AP:
The indictment alleges that as of late 2008 Credit Suisse was maintaining thousands of secret accounts for U.S. customers with as much as $3 billion in assets.
Credit Suisse itself is not charged in the indictment.
But the indictment states that bank officials “knew and should have known that they were aiding and abetting U.S. customers in evading their U.S. income taxes.”
So UBS bankers, as well as Credit Suisse bankers, have already been charged with helping clients set up accounts in offshore tax havens.
Some of the bankers charged so far:
From UBS: Renzo Gadola, who is now the head of RG Investment Partners
From Credit Suisse: Marco Parenti Adami; Emanuel Agustoni; Michele Bergantino; Roger Schaerer — three of whom left CS before they were indicted; Christos Bagios
The outcome of this, now wider investigation? Unknown. But maybe a settlement.