Credit Suisse still enabling tax evasion by US ultra-rich, says senate committee

Years before it was hit by the global banking crisis and had to be rescued from imminent collapse, the second-largest Swiss lender Credit Suisse had been linked to scandals. Apart from connections to a fund that wen't bankrupt, Credit Suisse was also found guilty of laundering money for a drug cartel in Bulgaria.

Even though it has now been merged into rival lender UBS, Credit Suisse is still helping US-based clients evade taxes.

Damning accusations by US authorities

• The US Senate Finance Committee made the revelation after probing Credit Suisse, although the lender said that it doesn't tolerate tax evasion.

• It also added in its statement, that the new leadership team was cooperating with authorities.

• Credit Suisse has been hit by successive scandals in the past three years, and this involves a fiasco where the bank hired private detectives to snoop on its former head of wealth in 2020.

Scandal after scandal

• In March 2021, Credit Suisse lost $15.5 billion in investments in two firms Greensill Capital and Archegos, as one collapsed and the latter defaulted within three weeks.

• It was also penalised for giving loans to state-owned firms in Mozambique, which used the funds for paying bribes.

Ahead of the crisis that got the better of Credit Suisse, it had already been plagued by governance issues, scams, and serious crimes. Its past record lends credence to the US Senate Committee's claims.