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Credit Suisse pleads guilty to helping 'tax cheats' | Credit Suisse pleads guilty to helping 'tax cheats' |
(35 minutes later) | |
The Swiss banking giant Credit Suisse has pleaded guilty to helping some US clients avoid paying taxes to the US government and agreed to pay a $2.6bn (£1.5bn) fine. | The Swiss banking giant Credit Suisse has pleaded guilty to helping some US clients avoid paying taxes to the US government and agreed to pay a $2.6bn (£1.5bn) fine. |
It is the biggest bank to plead guilty to criminal charges in the US in more than 20 years. | |
US attorney general Eric Holder said the bank helped US "tax cheats dodge US taxes". | |
Credit Suisse said in a statement it deeply regretted the past misconduct. | Credit Suisse said in a statement it deeply regretted the past misconduct. |
The bank said the settlement would reduce its second-quarter net profit by 1.6bn Swiss Francs ($1.8bn; £1bn). | |
However, as part of the agreement with US regulators, the bank will not lose its banking license in the US. | |
'Elaborate lengths' | |
"The bank went to elaborate lengths to shield itself, its employees, and the tax cheats it served from accountability for their criminal actions," said Mr Holder at a press conference. | |
"They subverted disclosure requirements, destroyed bank records, and concealed transactions involving undeclared accounts by limiting withdrawal amounts and using offshore credit and debit cards to repatriate funds." | |
Mr Holder said the tax evasion schemes went back decades, saying that in one Credit Suisse entity, the practice of using sham entities began more than 100 years ago. | |
However, according to US media reports, neither Credit Suisse chairman Urs Rohner nor chief executive Brady Dougan are expected to lose their jobs as a result of the agreement. | |
US authorities have already indicted eight Credit Suisse employees who helped clients evade taxes. | |
Credit Suisse is not alone. US prosecutors are chasing more than a dozen other Swiss banks for allegedly helping wealthy Americans dodge US taxes, and at the press conference, they hinted that there would be more settlements to come. | |
In 2009, another Swiss bank, UBS, settled similar charges with US regulators for $780m as well as an agreement in which the bank would give US authorities the names of its so-called "secret" account holders. | In 2009, another Swiss bank, UBS, settled similar charges with US regulators for $780m as well as an agreement in which the bank would give US authorities the names of its so-called "secret" account holders. |