Credit Suisse says it is a target of US probe

ZURICH: Swiss bank Credit Suisse is being investigated by the US Department of Justice (DoJ) as part of a broader inquiry into banks suspected of helping Americans evade taxes.

The investigation concerns historical private banking services provided on a cross-border basis to people in the United States, Credit Suisse said yesterday, adding that the bank had received a letter notifying it that it was being investigated on Thursday.

In 2009, Credit Suisse's local rival UBS AG averted indictment over its undeclared offshore private banking services by agreeing to pay US$780mil, admitting to criminal wrongdoing and turning over about 255 client names, later raised by the two sides to an additional 4,450.

“Subject to our Swiss legal obligations, we will continue to cooperate with the US authorities in an effort to resolve these matters,” Credit Suisse said in a statement.

The DoJ has been conducting a broad investigation into a number of Swiss banks, bankers, and third-party intermediaries to determine if they have helped wealthy American clients dodge taxes.

Companies involved in that probe include Credit Suisse, the second-largest bank in Switzerland; HSBC, Europe's largest bank; Julius Baer, a private bank based in Zurich; and Basler Kantonalbank, a Swiss cantonal bank in Basel, Switzerland.

Vontobel analyst Teresa Nielsen said Switzerland and the United States were likely to continue negotiations along with the DoJ investigation of Credit Suisse.

“Currently, it is difficult to say whether this will lead to a legal case and a fine against Credit Suisse,” Nielsen said. - Reuters