Credit Suisse Admits Guilt In Aiding US Citizens Evade Taxes - Live Eric Holder Press Conference

Tyler Durden's picture


As expected and discussed earlier in the day, Credit Suisse has become the first major bank to admit to doing anything wrong (though obviously unrelated directly to the financial crisis):


Expectations are for a $2.6 billion settlement ($1.9bn to DoJ & $0.7bn to NY) - notably more than the ~$475 million CS has reserved for the settlement - but Eric Holder's due to speak at a press conference at 6pmET to cover the details (but will anyone go to jail?)


Some details:



Remember - Holder told us there was no such thing as too big to jail...


Live Press Conference (click image for live feed via Bloomberg - no embed available)




As Reuters reported earlier,

Credit Suisse's guilty plea to U.S. criminal charges is likely to be announced after the market closes on Monday, three sources said.


Under a settlement, Credit Suisse is expected to pay over $2 billion to U.S. authorities to resolve charges it helped Americans evade taxes. The Swiss bank has been in negotiations with the U.S. Department of Justice, the U.S. Federal Reserve, and the New York State Department of Financial Services.


Spokesmen for Credit Suisse and the New York State Department of Finance as well as a spokeswoman for the U.S. Federal Reserve all declined to comment. A representative from the Department of Justice was not immediately available for comment.


A criminal guilty plea would be unusual for a financial institution. Authorities have not often sought criminal convictions against a company, fearing the action would put the firm out of business and result in lost jobs for employees that had nothing to do with any crime.


The Wall Street Journal reported on Monday that Chief Executive Officer Brady Dougan and Chairman Urs Rohner will retain their jobs under the settlement, citing a source.


Last week, sources told Reuters the settlement was expected to be about $2.5 billion, with about $2 billion going to the U.S. government, while the New York's Department of Financial Services potentially would get another $500 million or more. The bank feared that a bigger settlement would threaten its credit rating, a source said.


Wondering how they did it? - We laid it all out here

The criminal case follows a Senate subcommittee investigation that found the bank provided accounts in Switzerland for more than 22,000 US clients totalling up to $12bn.


The report said Credit Suisse sent Swiss bankers to recruit American clients at golf tournaments and other events, encouraged US customers to travel to Switzerland and actively helped them hide their assets.


In one instance, a Credit Suisse banker handed a customer bank statements hidden in a Sports Illustrated magazine during a breakfast meeting in the United States.

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Mon, 05/19/2014 - 18:01 | 4775161 Sinnedi
Sinnedi's picture

The perfect shitstorm is being set up. It's almost time to hunker down.

Mon, 05/19/2014 - 18:19 | 4775216 kill switch
kill switch's picture

Eric Holder accessory to murder along with Barry in fast and fucking furious......This shit really sucks and I need to take a shower just looking at this POS...

Mon, 05/19/2014 - 19:11 | 4775357 ACP
ACP's picture

Jerry Brown says all this criminal activity was a result of global warming.

Mon, 05/19/2014 - 18:20 | 4775228 Au_Ag_CuPbCu
Au_Ag_CuPbCu's picture

My money is on NO ONE goes to jail.  Just a hunch...

Mon, 05/19/2014 - 18:57 | 4775328 NYPoke
NYPoke's picture

My money is on private citizens going to jail.

Mon, 05/19/2014 - 18:25 | 4775241 Rainman
Rainman's picture

Just some Chi Town Shakedown thuggery out of Holder. This is what CS gets for pimping campaign contributions for Romney .

Mon, 05/19/2014 - 18:11 | 4775166 Squid Viscous
Squid Viscous's picture

LOL, money laundering is how DC scum like Holder exist...what an epic POS he is...

and the cheezy moustache wtf? kind of like WB's bernanke mask...

hard to believe he wakes up every day and says damn I look good, off to make some Justice!!

Mon, 05/19/2014 - 18:35 | 4775272 XitSam
XitSam's picture

Eric Holder, Domestic Terrorist

Or is that the fro of a freedom fighter?

Mon, 05/19/2014 - 18:04 | 4775169 SwissCake
SwissCake's picture

Domestic politics at our expense.

What about the GS and JPM of the world?

Mon, 05/19/2014 - 18:24 | 4775235 cougar_w
cougar_w's picture

Didn't you hear? GS were fed to a tiger:

It's really subtle, stick with it to the end I promise you'll flip out. 

Mon, 05/19/2014 - 18:04 | 4775172 Joebloinvestor
Joebloinvestor's picture

The favorite bank of the CIA gets busted.

Mon, 05/19/2014 - 18:25 | 4775240 cougar_w
cougar_w's picture

There is no honor between thieves. 

Mon, 05/19/2014 - 21:20 | 4775764 chemystical
chemystical's picture

Meant to reply to you but accidentally posted downstream:


The recently late Mike Rupert had it right with regard to the revolving door between CIA and Banking (no different than the door between, for example, the FDA and Big Pharma).

Read that post to the end. I know he had posts detailing many more CIA bankers but can't locate them.

Deutsche Bank was named as one that was littered with former CIA execs. (Incl but not at all limited to those from the Bankers Trust acquisition - yes, THAT Bankers Trust of the 9/11 airline puts. Remember GW stating that we'll get to the bottom of that? Yeah, right. Still not a peep from our "protectors" in D.C.).

Mon, 05/19/2014 - 18:12 | 4775185 BurningFuld
BurningFuld's picture

A criminal guilty plea would be unusual for a financial institution. Authorities have not often sought criminal convictions against a company, fearing the action would put the firm out of business and result in lost jobs for employees that had nothing to do with any crime.


How on earth work it put the bank out of business if you throw a few top guys in jail? They can after all just be replaced. What a stupid lame argument.

Mon, 05/19/2014 - 18:12 | 4775186 goldhedge
goldhedge's picture




Mon, 05/19/2014 - 19:06 | 4775341 MillionDollarBoner_
MillionDollarBoner_'s picture


FIFY ;o)

Mon, 05/19/2014 - 18:14 | 4775194 Evil Franklin
Evil Franklin's picture

Don't worry.  The Fed will see to it that they cover the fines imposed.

Mon, 05/19/2014 - 18:15 | 4775198 DIgnified
DIgnified's picture

Too much foreplay.  Get the fucking over with. 

Mon, 05/19/2014 - 18:16 | 4775199 MedicalQuack
MedicalQuack's picture

How about the big guys..documentary..The Tax Free Tour about tax havens, all set up by the big 4 accounting firms in the US.  According to the documentary one of the 4 needs to set it up so it works properly.

Again they went after low hanging fruit but when technology like the big 4 have to set it up, well we know what goes on there, low fruit again.  Too big to jail...well another documentary...again no tech skills and DOJ Lanny just whines and whines and tells us he couldn't prosecute or it would ruin his career.

Mon, 05/19/2014 - 18:17 | 4775204 Schmuck Raker
Schmuck Raker's picture

After the regulators don't pull CS's banking charter Holder can go after the rest.


Mon, 05/19/2014 - 18:18 | 4775209 TooBearish
TooBearish's picture

Are these fines tax deductable?  Just another line item of expense in the old P&L for Brady... move on to the next shakedown Eric, well done, now have a bonus party for you and your minuions in Vegas!  Rock On!!!

Mon, 05/19/2014 - 18:18 | 4775210 Karl von Bahnhof
Karl von Bahnhof's picture

This will not end well for the ole poor U.S.

Who do they think they are? Greenhorns.

You do no fuk with the swiss!
Beware, gringos!

(i told ya!)

Mon, 05/19/2014 - 18:22 | 4775211 Squid Viscous
Squid Viscous's picture

if he can only afford Just For Men for his 'stache, and not that brillo pad on his skull, he must be payin off mad bitches...

Mon, 05/19/2014 - 18:19 | 4775217 new guy
new guy's picture

They are not tax evaders. They are tax heroes.

Mon, 05/19/2014 - 18:22 | 4775232 Mitzibitzi
Mitzibitzi's picture

Can't quite work out why the reply from Credit Suisse wasn't simply, "Yeah, so? Not like every other motherfucker in a $5000 suit ain't doing it, too!"

Mon, 05/19/2014 - 18:20 | 4775227 cougar_w
cougar_w's picture

(but will anyone go to jail?)

The mail clerks are shaking in their boots right now.

Mon, 05/19/2014 - 18:21 | 4775231 Seize Mars
Seize Mars's picture

Such justice!

Much settlement!


Mon, 05/19/2014 - 18:41 | 4775284 cougar_w
Mon, 05/19/2014 - 23:35 | 4775395 Seize Mars
Seize Mars's picture


I am of the mind that a bank is such an inherently statist organization that I think any sort of financial settlement with the government is sort of a joke. It's a different pocket of the same jacket, you know?

There I go being cynical. Or is it being a "realist?"

Mon, 05/19/2014 - 18:23 | 4775233 Stoploss
Stoploss's picture
  • *CREDIT SUISSE NEW YORK AGREEMENT INCLUDES MONITOR, TERMINATIONS                                 All the money go's to New York.  It's already over. No jail time for anyone.
Mon, 05/19/2014 - 18:27 | 4775256 Squid Viscous
Squid Viscous's picture

 I hereby nominate Vernon Jordan for Hitlery's DOJ head, got to give props to the pops of racial shakedowns!!

Mon, 05/19/2014 - 18:32 | 4775266 The Alarmist
The Alarmist's picture

Makes one wonder where the criminal elite are sheltering their money nowadays.

Mon, 05/19/2014 - 18:49 | 4775309 cougar_w
cougar_w's picture

The criminal elites have an entirely separate banking system established in the year 1387, the institutional members of which you have never heard of. They have names that translate into things like "Clerical Brotherhood of Maritime Underwriters" and together control 98% of the world's wealth.

I made all that up just now. But I'm probably correct and there is probably an actual Clerical Brotherhood of Maritime Underwriters who up until this very instant were not even google-able on the web. Sorry to ruin it for you guys, I'll try to make it up to you later.

Mon, 05/19/2014 - 21:24 | 4775775 mt paul
mt paul's picture

Belgium or  Liechtenstein

Mon, 05/19/2014 - 18:45 | 4775291 kill switch
kill switch's picture

Under a settlement, Credit Suisse is expected to pay over $2 billion to U.S. authorities to resolve charges it helped Americans evade taxes,,,,The 16th amendment was never ratified, the whole INCOME TAX SYSTEM is a FRAUD!!!!!! Fuck the IRS and the phoney scandals of Louis Lerner who pleaded the fifth....... FUCK EVERBODY IN DC!!!! I always plead the fifth when I'm involved in a phoney scandal....Boehner will not arrest her because we never did this before..

Mon, 05/19/2014 - 18:46 | 4775299 optimator
optimator's picture

 more than 22,000 US clients totalling up to $12bn, and I'll bet Holder is getting ready to prosecute all of them.  (Spoiler, he won't be ready until Statute Of Limitations expires.)


Mon, 05/19/2014 - 18:56 | 4775325 cougar_w
cougar_w's picture

No, he'll go after that old Euro widow -- you know the one pretends to be a Rothchilds but is really just a Churchill -- who dissed Obama at a Demo fundraiser in 2008 saying Mitchell reminder her of that Polish actress who wasn't very good. Shit like that, you go after the Swiss just to get her. You go to the Swiss and say "you be gang'sta beotch, unless you hand over that old twat widow u no who i mean" and everyone thinks it's all about da moneez 'cept it not.

Mon, 05/19/2014 - 18:49 | 4775304 Things that go bump
Things that go bump's picture

Why should a foreign bank, in this case Swiss, concern itself with whether or not US citizens are compliant with US tax law, and why should they not assist with certain customer requests outside the US. Of course, any holdings in that bank and any business transacted within the US and within the US only should be subject to US law. Its hard to believe the Swiss would knuckle under to this sort of bullying and not protect their traditional banking secrecy. I can't imagine that the benefits will exceed the cost.

Mon, 05/19/2014 - 18:59 | 4775330 kill switch
kill switch's picture

If they don't they will be summarily DRONED!!!muhahahahaha or horse face Kerry will impose FUCKING SANCTIONS!!

Mon, 05/19/2014 - 19:30 | 4775423 Cthonic
Cthonic's picture

They expanded into the US market years ago, subjecting themselves US regulations, regulators, and robbery.

Tue, 05/20/2014 - 03:09 | 4775989 Things that go bump
Things that go bump's picture

I understand that they expanded into the US market, but how does that subject their overseas business to US regulations, regulators and robbery, though I understand it apparently does. Why would they hand over their autonomy and sovereignty and their much vaunted tradition of secrecy (which was the only major advantage they actually had to offer) and subject themselves to the heavy-handed US gov for whatever dubious advantage expansion into the US market may confer? I frankly think they've been had and the whores apparently spred their legs willingly. I imagine many of the clients they have betrayed have been with them for generations and are not best pleased. I think they will find that protecting the ill-gotten gains of others from all comers, with their very lives if necessary, was a much better business plan than shafting old and valued customers, which generally doesn't end well. Venezuela ought to consider picking up the slack, or maybe North Korea.

Tue, 05/20/2014 - 13:53 | 4778127 Cthonic
Cthonic's picture

Well, they (UBS and CS) had the choice to either bow down obediently before the US extortionists, or be stripped of their US-based licenses and, likely, assets.  Why the Swiss federal banking commission ever let them expand outside of Switzerland to begin with is key, and it wouldn't surprise me if they had eventually succumbed to being another revolving door regulator back in the seventies or so.  It would be enlightening to hear Krasting's take on this.

Mon, 05/19/2014 - 18:51 | 4775314 stant
stant's picture

Everything and everyone is a enemy of the state. Hunting down capital, until it exist no more

Mon, 05/19/2014 - 18:56 | 4775324 f16hoser
f16hoser's picture

Fuck Eric Holder! He'll use the 1.9Bln to take (try & fail) away our guns. I guarantee it!!!

Mon, 05/19/2014 - 19:12 | 4775352 Tinky
Tinky's picture

CS: Where would you like the $2.6b to be wired?

DOJ: We'd prefer the equivalent in gold bullion to be shipped, but please wait until 6:30 (EST) tomorrow morning before converting the currency into metal.

Mon, 05/19/2014 - 19:20 | 4775375 jjsilver
jjsilver's picture

How does a fiction plead to criminal charges? I thought people commit crimes, that's why one should never claim to be the legal name on the birth certificate.

Mon, 05/19/2014 - 19:40 | 4775459 Cthonic
Cthonic's picture

$2.6 billion, just a taste

Tue, 05/20/2014 - 02:39 | 4775476 statelessman
statelessman's picture

So it seems the only place one can hide from a overtaxing country is cryptocurrencies, the Swiss no longer can protect your wealth from the money grabbing governments.

The Swiss served as a place to keep governments from getting out of control, now we only have Bitcoin and the like.

Mon, 05/19/2014 - 20:02 | 4775523 g'kar
g'kar's picture

Holder and the NSA must've had some pretty serious child porn blackmail going on these guys.

Mon, 05/19/2014 - 20:12 | 4775552 F em all but 6
F em all but 6's picture

Fucken A. The criminals are now eating the criminals. Another dog and pony show. Perhaps they could up the fines and collapse the banks. Which could then be rebailed out by the public treasury. Anyone up for a circle jerk???

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