C Suisse puts businesses into different unit

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Credit Suisse, facing the prospect of U.S. criminal charges for aiding Americans’ tax evasion, created a separate legal entity late last year to house the businesses involved.

Bloomberg News reports that the bank is close to resolving U.S. inquiries with an agreement that could include a penalty of more than $1bn and a guilty plea, according to a person familiar with the talks.

The new unit, CS International Advisors AG, was incorporated in December with a Swiss banking license. In February, Credit Suisse moved its U.S. cross-border business into the fully owned entity, according to records from the Commercial Register of the Canton of Zurich.

The Justice Department, cracking down on foreign banks that help Americans cheat the Internal Revenue Service, may charge the unit instead of the whole firm, said Scott Michel, a tax lawyer at Caplin & Drysdale in Washington. Prosecutors, who must weigh economic consequences when taking action, have expressed concern about the potential fallout from charging big banks.

To access the complete Bloomberg article hit the link below:

Credit Suisse Put Business Probed by U.S. Into New Unit

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