February 25, 2024

The US authorities accuse Credit Suisse of “criminal misconduct.”


The American authorities are talking about years of “criminal misconduct”: that is why Credit Suisse is threatened with problems again

The business of Credit Suisse's US pension fund is at risk. The authorities are currently studying whether the main bank can continue to do business in this area. You're talking about years of criminal misconduct

In the US, CS's pension fund business is under scrutiny. (Archives)


Credit Suisse (CS) cannot escape the negative spiral. A little more than a month ago, the bank announced that it had lost a lawsuit in Bermuda. In this context, a fine of more than 500 million US dollars is expected. Finally, CS announced on Wednesday that it expects to be in the red for the first quarter of 2022 – due to legal dispute provisions.

Now more dark clouds are gathering on the horizon of the big bank, this time from the United States. As first reported by Bloomberg News on ThursdayUS authorities are currently checking whether Credit Suisse can continue its business with pension funds. Specifically, the DOL is questioning CS's status as a so-called qualified professional asset manager (QPAM).

“Systemic criminal misconduct”

Although the authority has extended the bank's relevant status by one year, it is still verifying its eligibility. In the Official Journal of the US Federal Government, the Department of Labor explains that the “convictions and other alleged criminal misconduct” in connection with CS represent “serious and systematic criminal misconduct that has been going on for years.” This raises “fundamental questions about whether the QPAMs associated with Credit Suisse have sufficient integrity.”

In 2014, the IRS admitted that it helped US citizens evade taxes. The large bank was then forced to pay a fine of $2.6 billion and submit an application to the Department of Labor in order to continue managing US pension funds. The CS was given a one-year extension, followed by a waiver for another five years.

When contacted by CH Media, Credit Suisse did not wish to comment further on the latest investigation by US authorities.

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