U.S., Credit Suisse Deal Said to Be Near
Credit Suisse Settlement Expected to Exceed $1 Billion
By Devlin Barrett and John Revill
May 5, 2014 5:24 p.m. ET
http://online.wsj.com/news/articles/SB1000142...0459314638
WASHINGTON—U.S. prosecutors, eager to prove Wall Street banks are not "too big to jail," are close to securing a guilty plea and a settlement of more than $1 billion from Credit Suisse Group AG over allegations the bank helped wealthy Americans evade taxes, according to people familiar with the discussions.
The Justice Department has been pushing the bank to plead guilty to a crime and U.S. officials are increasingly confident they can wrest such an agreement from the bank in the coming days, these people said.
A spokesman for Credit Suisse declined to comment on the current negotiations.
Earlier on Monday, U.S. Attorney General Eric Holder said in a video message posted on the Justice Department's website that his department is coordinating with financial regulators to make it possible to bring criminal charges against big banks. Mr. Holder didn't mention any specific banks in his video remarks, but the Justice Department has been pursuing guilty pleas from Credit Suisse for its alleged role in helping Americans dodge taxes.
In a quarterly report last Friday, Credit Suisse, which is one of roughly a dozen Swiss banks under criminal investigation by U.S. authorities for allegedly aiding tax evasion, said it was "working hard" to bring the U.S. tax issue to a close but that "the timing and outcome remain uncertain." Credit Suisse has already booked more than 700 million Swiss francs ($796 million) in related legal charges as it prepares for a possible settlement with U.S. authorities.
Last week, Eveline Widmer-Schlumpf, the head of Switzerland's finance department, met with Mr. Holder to discuss the situation, the Swiss finance department said at the weekend. Switzerland has said it is committed to a "fair and balanced procedure" that ensures Swiss banks aren't treated worse than other banks.
More than 100 Swiss banks have applied for a U.S. Justice Department program that allows them to voluntarily disclose some details of their efforts to assist American taxpayers in avoiding their obligations. Under the program, banks with undeclared U.S. assets would be required to pay fines but would be eligible to receive agreements letting them avoid prosecution.
The Justice Department's crackdown on tax evasion has already seen Switzerland's largest bank, UBS AG , paying $780 million and handing over more than 4,000 names to U.S. authorities to avoid criminal charges.
Write to John Revill at john.revill@wsj.com
http://online.wsj.com/news/articles/SB1000142...0459314638
Credit Suisse Settlement Expected to Exceed $1 Billion
By Devlin Barrett and John Revill
May 5, 2014 5:24 p.m. ET
http://online.wsj.com/news/articles/SB1000142...0459314638
WASHINGTON—U.S. prosecutors, eager to prove Wall Street banks are not "too big to jail," are close to securing a guilty plea and a settlement of more than $1 billion from Credit Suisse Group AG over allegations the bank helped wealthy Americans evade taxes, according to people familiar with the discussions.
The Justice Department has been pushing the bank to plead guilty to a crime and U.S. officials are increasingly confident they can wrest such an agreement from the bank in the coming days, these people said.
A spokesman for Credit Suisse declined to comment on the current negotiations.
Earlier on Monday, U.S. Attorney General Eric Holder said in a video message posted on the Justice Department's website that his department is coordinating with financial regulators to make it possible to bring criminal charges against big banks. Mr. Holder didn't mention any specific banks in his video remarks, but the Justice Department has been pursuing guilty pleas from Credit Suisse for its alleged role in helping Americans dodge taxes.
In a quarterly report last Friday, Credit Suisse, which is one of roughly a dozen Swiss banks under criminal investigation by U.S. authorities for allegedly aiding tax evasion, said it was "working hard" to bring the U.S. tax issue to a close but that "the timing and outcome remain uncertain." Credit Suisse has already booked more than 700 million Swiss francs ($796 million) in related legal charges as it prepares for a possible settlement with U.S. authorities.
Last week, Eveline Widmer-Schlumpf, the head of Switzerland's finance department, met with Mr. Holder to discuss the situation, the Swiss finance department said at the weekend. Switzerland has said it is committed to a "fair and balanced procedure" that ensures Swiss banks aren't treated worse than other banks.
More than 100 Swiss banks have applied for a U.S. Justice Department program that allows them to voluntarily disclose some details of their efforts to assist American taxpayers in avoiding their obligations. Under the program, banks with undeclared U.S. assets would be required to pay fines but would be eligible to receive agreements letting them avoid prosecution.
The Justice Department's crackdown on tax evasion has already seen Switzerland's largest bank, UBS AG , paying $780 million and handing over more than 4,000 names to U.S. authorities to avoid criminal charges.
Write to John Revill at john.revill@wsj.com
http://online.wsj.com/news/articles/SB1000142...0459314638
