The report also says that "The [U.S.] investigation against Credit Suisse has also prompted Swiss private banks Bank Sarasin and Julius Baer to ban staff from travelling to the United States." Bank Sarasin spokesman is quoted as saying: "It's about protection. So the bank and its employees will be protected from investigations and arrests."
Reuters Report: Credit Suisse unlikely to get help over U.S tax probe (Reuters 7/24/11).
Addendum 7/27/11: A commenter posted this article: Marie-Christine Bonzom in Washington, Credit Suisse “worse off” than UBS in the US, (sissinfo.ch 7/27/11). The author of the article paints a gloomy picture for Credit Suisse. Among the items covered are:
“The very serious allegations against Credit Suisse relate to a wider range of conduct extending beyond a tax conspiracy into a broader range of criminal activity,” Michel of the Washington firm Caplin & Drysdale told swissinfo.ch.
“These are not just allegations that a Swiss bank opened accounts that they knew would not be reported to the IRS [Internal Revenue Service], there are also allegations that employees of the bank lied to the Federal Reserve, engaged in destruction of records, helped people try and evade DOJ [Department of Justice] investigation and provided unlicensed banking services to customers,” the lawyer representing some 30 Credit Suisse clients said.
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Michel, along with Lawrence Horn of the firm Sills, Cummis & Gross in Newark, interpret the measures taken in the past week by the US authorities as pointing to the imminent indictment of the bank itself.
“Credit Suisse is on the verge of being indicted, unless the bank negotiates with DOJ and gives names of its American depositors,” Michel said.
The letter sent to Credit Suisse is known in legal jargon as a target letter, and its meaning is clear, according to Horn. “It means that the Department of Justice has enough evidence to indict you”.
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Faced with this unfavourable climate and at risk of losing its US licence if indicted, it is in the bank’s interest to cooperate and make amends honourably, the lawyers say.
As Horn predicts: “Credit Suisse will go the way of UBS, it will enter into a deferred prosecution agreement, it will pay millions of dollars in fines and it will turn over a number of its American depositors.”
“There’s no escape for Credit Suisse because it wants to continue to do business in the United States,” he added.