Thursday, June 19, 2014
The Credit Suisse / DOJ Negotiations (6/19/14)
Lynnley Browning has a great article on the intrigues in the Credit Suisse / DOJ negotiations. How Credit Suisse Got Off Easy (Newsweek 6/18/14), here. Ms. Browning focuses on the intrigue of the Swiss blocking of Credit Suisse' ability to disclose the names of the U.S. depositors. The $2.6 billion dollar cost was substantial but not that material to Credit Suisse. And, in terms of its business operations, Credit Suisse did not miss a beat. But, as she presents the story, it was all about the names and the Swiss authority threatened prosecution of the bank's officers if names were turned over. One of the great quotes regarding this back and for is that the "the Justice Department 'did not trust' the Swiss." That strikes me as a reasonable assessment.