FINANCIAL TIMES: Credit Suisse pleaded guilty to an “extensive and wide-ranging conspiracy” to help US clients evade taxes and agreed to pay about $2.6bn in fines as it became the first large global bank in two decades to admit to criminal charges.
The plea to one count of conspiracy entered by bank representatives in a Virginia courthouse resolves a long-running investigation into the Swiss bank’s private banking business, including its Clariden Leu subsidiary, in helping Americans hide assets offshore.
As part of the pact, the US Department of Justice will receive $1.8bn in fines and restitution. New York state’s Department of Financial Services will receive $715m, with $100m going to the Federal Reserve… (more)
EDITOR: At long last a bank institution has been made to pay for its crimes, thus sending the only type of message that the financial industry understands. No longer anticipated small penalties for ignoring the law be considered the “cost of doing business.” Moreover, the criminal conviction opens the door to claims by others and possible greater regulation oversight here and abroad. Can we imagine this taking place under a ‘W” or a Corbett administration?
