Attorneys for Credit Suisse met with senior Justice Department officials Wednesday as turmoil in the banking industry throws new complications into efforts to resolve allegations that the bank continued to help wealthy clients evade taxes in violation of a years-old plea deal with the US, people briefed on the matter told CNN.
The meeting comes at a precarious time as Credit Suisse is being acquired by Switzerland’s largest bank UBS as part of an emergency rescue intended to stave off a global banking crisis. Credit Suisse’s fall now threatens to complicate ongoing discussions for a new settlement that, before the Swiss government-engineered rescue, was estimated could reach over $1 billion, people briefed on the matter said.
The Zurich-based bank agreed to pay a $2.6 billion fine and pleaded guilty in 2014 to aiding tax evasion. A Senate report published Wednesday estimated that Credit Suisse continued to hold more than $700 million in concealed accounts in violation of the 2014 plea deal, despite promising to cease doing business with clients seeking to evade taxes. The Justice Department has been investigating.
The emergency takeover has added hurdles to ongoing discussions to resolve the new Justice Department investigation, in part because some US government officials have expressed concerns that a large settlement could add fresh turmoil to the banking industry, people briefed on the matter said.
Credit Suisse has hired lawyers to conduct an internal investigation to identify accounts that could violate US law, as part of an effort to reach a new settlement with the Justice Department, the people briefed on the matter said.
Spokespeople for Credit Suisse and the Justice Department declined to comment on Wednesday’s meeting.
The turmoil also presents a predicament for Justice Department officials, who have promised a crackdown on…
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