🥇 First rule of investing? Know when to save! Up to 55% off InvestingPro before BLACK FRIDAYCLAIM SALE

Credit Suisse ordered to pay $1.8 billion to finalise U.S. guilty plea

Published 21/11/2014, 18:14
© Reuters. The logo of Swiss bank Credit Suisse is seen on an office building in Zurich
CSGN
-
MLPN
-

By Gary Robertson

NORFOLK Va. (Reuters) - A U.S. judge on Friday accepted Credit Suisse's (VX:CSGN) guilty plea to end a criminal case accusing it of helping wealthy Americans avoid paying taxes, and ordered the bank to pay roughly $1.8 billion (1.15 billion pounds) in fines and restitution.

The payout includes a $1.14 billion criminal fine and a nearly $667 million payment to the Internal Revenue Service.

Credit Suisse agreed to the payout as part of a more than $2.5 billion settlement with several government authorities, including the U.S. Department of Justice and New York State's financial services department.

The guilty plea was accepted by Chief Judge Rebecca Beach Smith of the federal court in Norfolk, Virginia.

Credit Suisse admitted in May it helped clients deceive U.S. tax authorities by concealing assets in undeclared bank accounts.

Smith said she wanted to see a stiff punishment and would accept the $1.14 billion fine, which is payable within one week, because it fell within recommended federal guidelines.

"Deterrence is very important here," she said.

Lawyers for Credit Suisse and for the government said little at the 25-minute hearing.

A Credit Suisse spokesman said: "We have worked closely with the U.S. Department of Justice to conclude this matter, and having it fully resolved is an important step forward for us."

The bank still faces a hearing before the U.S. Department of Labor in January to determine whether it should be allowed to manage Americans' retirement funds because of its guilty plea.

© Reuters. The logo of Swiss bank Credit Suisse is seen on an office building in Zurich

(Reporting by Gary Robertson in Norfolk, writing by Aruna Viswanatha and Jonathan Stempel; Editing by Chris Reese)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.