Credit Suisse Under Investigation by United States Authorities for Continuing to Help Clients Evade Tax, 8 Years After 2014 Tax Settlement Fine of $2.6 Billion
15th October 2022 | Hong Kong
Credit Suisse is reported to be under investigation by the United States authorities (Department of Justice) for helping clients evade tax, continuing to do so after the 2014 tax settlement fine of $2.6 billion. The investigation is focused on clients in United States (with South American Passports). In September 2022, Credit Suisse reached a $32.5 million settlement shareholders’s lawsuit for misleading shareholders (United States District Court in Manhattan) on strong risk management, including exposure to collapsed $120 billion Archegos family office & $10 billion Greensill Funds. In December 2021, Credit Suisse fired 2 investment managers (Portfolio Manager & Head of Fixed Income) who were involved in the failed $10 billion Greenhill Fund. Credit Suisse was hit by the troubled Greensill $10 billion supply-chain financing fund, which was introduced as a safe investment product to many of its institutional clients including pension funds and sovereign wealth funds. In 2022 April, Credit Suisse Life Bermuda lost a $500 million lawsuit to former Georgian Prime Minister Bidzina Ivanishvili for illegal trades by former Credit Suisse Private Banker Patrice Lescaudron that resulted in hundreds of millions of losses. In 2018, former Credit Suisse Private Banker Patrice Lescaudron was convicted in Switzerland for forging client signatures to 5 years imprisonment, and later committed suicide in 2020. In September 2022, Bidzina Ivanishvili sued Credit Suisse Trust in Singapore for losing $1.27 billion for failing to safeguard his investments in a fraud committed by former Switzerland-based private banker Patrice Lescaudron. The trial began in Singapore on the 5th of September 2022. At the opening statement, Credit Suisse Trust had calculated the losses at $818.2 million, instead of the estimate of $1.27 billion by Bidzina Ivanishvili.
“ Credit Suisse Under Investigation by United States Authorities for Continuing to Help Clients Evade Tax, 8 Years After 2014 Tax Settlement Fine of $2.6 Billion “
Credit Suisse Share Price Down 53.6% YTD with Market Capitalisation of $11.9 Billion, In Restructuring after $120 Billion Archegos Family Office, $10 Billion Greensill Funds & Senior Executives Departures
Credit Suisse is currently in restructuring & finalising its strategic review after the collapse of $120 billion Archegos family office (loss of $5.5 billion), collapse of $10 billion Greensill funds and senior executives departures, with Credit Suisse share price down 53.6% YTD (6/10/22) with market capitalisation of $11.9 billion. In comparison, the market capitalisation of UBS is $51.4 billion, HSBC is $103 billion, Citi is $83.9 billion, BNP Paribas is $52.7 billion, Deutsche Bank is $15.8 billion and Barclays is $22.5 billion. In Asia-Pacific, Hang Seng Bank is $29 billion (one of Hong Kong largest bank), DBS Bank is $60.1 billion (one of Singapore largest bank), Maybank is $18.5 billon (one of Malaysia largest bank), Bank Rakyat Indonesia is $44 billion (one of Indonesia largest bank) and Commonwealth Bank of Australia is $105 billion (one of Australia largest bank). Credit Suisse share price is down 55.7% (1 year) and 72.71% (5 years). The largest shareholders of Credit Suisse are Harris Associates (5.17%), Qatar Holding (5.03%), Dodge & Cox (4.99%), Olayan Group (4.93%), BlackRock (4.11%) and Silchester International Investors (3.03%). In late September 2022, Credit Suisse provided key updates on its ongoing strategic review, including strengthening Wealth Management, transforming Investment Bank into capital-light & advisory-focused Investment Bank, and evaluating strategic options for Securitized business. The bank will update the market further when it reports third-quarter results on October 27, 2022.
Credit Suisse was hit by the troubled Greensill $10 billion supply-chain financing fund, which was introduced as a safe investment product to many of its institutional clients including pension funds and sovereign wealth funds. In 2021, Credit Suisse suffered a loss of $5.5 billion from Archegos Family Office.
Credit Suisse Shareholder Returns
- YTD (6/10/22) 53.61%
- 1 Year 55.70%
- 5 Years 72.71%
Market Capitalisation (6/10/22):
- Credit Suisse: $11.9 billion (CHF 11.8 billion)
- UBS $51.4 billion
- HSBC $103 billion
- Citi: $83.9 billion
- BNP Paribas: $52.7 billion (one of France largest bank)
- Deutsche Bank: $15.8 billion (one of Germany largest bank)
- Barclays: $22.5 billion (one of UK largest bank)
- Hang Seng Bank: $29 billion (one of Hong Kong largest bank)
- DBS Bank: $60.1 billion (one of Singapore largest bank)
- Maybank: $18.5 billon (one of Malaysia largest bank)
- Bank Rakyat Indonesia: $44 billion (one of Indonesia largest bank)
- Commonwealth Bank of Australia: $105 billion (one of Australia largest bank)
Top Credit Suisse Shareholders
- Harris Associates (5.17%)
- Qatar Holding (5.03%)
- Dodge & Cox (4.99%)
- Olayan Group (4.93%)
- BlackRock (4.11%)
- Silchester International Investors (3.03%)
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