STOCK MARKET WATCH -- Monday, 3 March 2014

[Demeter]

6. Credit Suisse Helped U.S. Clients Hide Billions in Assets, Senate Report Says

http://dealbook.nytimes.com/2014/02/25/credit-suisse-helped-u-s-clients-hide-assets-senate-report-says/?_php=true&_type=blogs&_r=0

...The 176-page report charges that from at least 2001 through 2008, the Swiss bank helped its American customers evade taxes through a variety of means, including opening accounts in the name of shell companies and sending Swiss bankers to the United States to secretly recruit new clients and avoid creating a paper trail...

“Financial institutions like Credit Suisse have profited from their offshore tax haven schemes while depriving the U.S. economy of billions of dollars in tax revenues,” Senator John McCain of Arizona, the subcommittee’s ranking Republican member, said in a statement. “As federal regulators begin to crack down on these banks’ illicit practices, it is imperative that they use every legal tool at their disposal to hold these banks fully accountable,” he said.

The Senate report may put additional pressure on the Justice Department to prosecute or settle with the Swiss banks and bankers it has investigated. The Justice Department indicted several Credit Suisse bankers on charges of aiding tax evasion in 2011. The bank has also said it is being investigated by the Justice Department. It is expected to settle that inquiry.

“The prospect of U.S. prosecution has been forceful enough to cause 43,000 taxpayers to self-report and pay nearly $6 billion in taxes and penalties,” a Justice Department spokeswoman said. “Since 2009, the department has publicly charged 73 account holders and 35 bankers and advisers with offenses related to offshore tax evasion. And we have acknowledged that as many as 14 Swiss financial institutions are currently under investigation, and we won’t hesitate to indict if and when circumstances merit.”

Five years ago, the United States charged the largest Swiss bank, UBS, with aiding tax evasion. UBS admitted guilt and paid $780 million in fines and other costs.

This month, Credit Suisse said that legal costs were weighing on its bottom line. It reported net income of 267 million Swiss francs, or about $300 million, in the fourth quarter of 2013. It has set aside 514 million francs for legal costs, much related to its American mortgage business. Last week, the bank paid a $196 million fine to the Securities and Exchange Commission for failing to properly register with the agency before advising American clients. The Swiss firm also admitted wrongdoing in the settlement. According to the report, Credit Suisse held Swiss accounts for over 22,000 American customers. The assets in those accounts were worth $10 billion to $12 billion at their peak. Over the last five years, the bank has shut down accounts held by 18,900 United States clients. MORE

U.S. senators scold prosecutors, Swiss bank in tax spat

http://news.yahoo.com/u-senate-grill-bankers-prosecutors-over-swiss-tax-060528729--sector.html

JUST SOME CHICKENS COMING HOME FOR A WELL-DESERVED ROOST IN THE OBAMA HENHOUSE...