C Suisse punishment sends warning to other big banks

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The U.S. Justice Department didn’t blink in its pursuit of a guilty plea from Credit Suisse for helping thousands of Americans evade taxes. What prosecutors accomplished with the criminal conviction - the first of a major bank in a decade - isn’t as clear.

Bloomberg News reports that the punishment, announced yesterday in federal court, was intended to send a strong message to other banks and quell public criticism since the 2008 financial crisis that prosecutors have been soft on financial institutions.

Credit Suisse agreed to pay $2.6bn -- the largest penalty in an offshore tax case -- for using secret Swiss accounts to help Americans hide money from the Internal Revenue Service, concluding a three-year probe by the U.S. If the penalty strikes the right balance between punishing the bank and containing broader market repercussions, prosecutors could use it as a model in other matters, such as a probe of BNP Paribas's transactions with sanctioned countries.

Eight Credit Suisse employees have been indicted in the matter. Top executives including CEO Brady Dougan are expected to keep their jobs, even though Holder called the conduct 'an extensive and wide-ranging conspiracy'.

To access the complete Bloomberg article hit the link below:

Credit Suisse Plea Sends Warning to Banks Under Scrutiny

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