Credit Suisse agreed to pay $2.6bn in penalties and pleaded guilty to helping Americans cheat on their taxes, making it the first global bank in a decade to admit to a crime in a U.S. courtroom.
Bloomberg News reports that the plea also signals a tougher posture by the Justice Department, which has faced criticism that it avoided pursuing large banks after the 2008 financial crisis because of the potential economic fallout. The firm said the deal will cut second-quarter earnings by $1.79bn.
'This case shows that no financial institution, no matter its size or global reach, is above the law', Attorney General Eric Holder said during a press conference. He said 'a company’s profitability or market share can never and will never be used as a shield from prosecution or penalty. And this action should put that misguided notion definitively to rest'.
The bank will pay $1.8bn to the U.S., which includes almost $670m in restitution to the Internal Revenue Service. The penalty also involves a $715m payment to New York’s Department of Financial Services and $100m to the Federal Reserve. The state banking regulator also called for the termination of certain employees and an independent monitor, the person said.
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