Credit Suisse faces US tax investigation and Senate investigation – Bloomberg News

Oct 11 (Reuters) – The U.S. Justice Department is investigating whether Credit Suisse (CSGN.S) continued to help U.S. clients conceal assets from authorities, eight years after the Swiss bank paid a settlement for tax evasion of $2.6 billion, Bloomberg News reported on Tuesday.

Investigators are looking into whether the bank helped US account holders, particularly those holding South American passports, who may not have notified the Internal Revenue Service of assets worth hundreds of millions of dollars, according to the report, citing people familiar with the matter. (https://reut.rs/3CRbfEN)

The investigation adds to the beleaguered bank’s woes.

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One of Europe’s biggest banks, Credit Suisse is trying to recover from a series of scandals, including losing more than $5 billion from the collapse of investment firm Archegos last year , when she also had to suspend client funds linked to bankrupt financier Greensill.

In the past three quarters alone, losses have amounted to nearly 4 billion Swiss francs ($4.03 billion) and last week, in an unusual move, the Swiss National Bank, which oversees the financial stability of systemically important banks in Switzerland, said he was monitoring the situation at Credit Suisse.

Credit Suisse, Switzerland’s second-largest bank, announced last week that it would buy up to 3 billion Swiss francs of debt, in a bid to show its financial strength when speculation over the bank’s future heats up. are accelerated on social networks. Read more

As part of a restructuring launched by Chairman Axel Lehmann, the bank plans to reduce its investment banking to focus even more on its flagship wealth management business.

“Credit Suisse does not condone tax evasion,” the bank told Reuters in a statement on Tuesday. He also added that he is “cooperating closely with U.S. authorities, including the U.S. Senate and the Department of Justice.”

A Justice Department spokesman did not immediately respond to a Reuters request for comment.

($1 = 0.9930 Swiss francs)

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Reporting by Noor Zainab Hussain, Sneha Bhowmik and Mrinmay Dey in Bengaluru; Editing by Shailesh Kuber

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Norman D. Briggs