Wednesday, December 16, 2009

Credit Suisse to Pay $536 Million Settlement on Iran

Swiss bank Credit Suisse provided financial services to sanctioned countries, Iran, Libya, Sudan and Burma. They will pay a $536 million settlement fine. BBC reported:

US government papers filed in the latest case said: "Credit Suisse's internal communications showed a continuous dialogue about evading US sanctions spanning approximately a decade."
Dealing with terrorist regimes? This brings back memories of the Chiquita banana settlement. Chiquita hired Colombian terrorists of right and left wing stripes. They paid a $25 million fine.

Another Swiss bank, UBS had a continuous dialogue about evading US tax laws. They also settled with Uncle Sam. In a strange move, Swiss law guides non-investigations of UBS senior management. This is in direct contrast to the Credit Suisse situation. The BBC reported:

The US government has the power to take proceedings against foreign financial institutions - even for actions involving other countries - if they do some of their business in America.

Yet, the same US government will not go after UBS executives, not even ones living in America. They won't have to pull out their checkbook, much less go to jail for any crimes committed.