Credit Suisse and Desist
I missed this one because, well, I've been doing other shit and not all that concerned with what the misbehaving bankers are up to. Because I've got a little bit of a soft squishy spot for Credit Suisse, I can't let this one go without at least saying something.
The Federal Reserve Board on Wednesday issued a Cease and Desist order against global financial services firm Credit Suisse.
The order requires Credit Suisse to improve its program to comply with US economic sanctions requirements on a global basis.
Credit Suisse’s supervisor, the Swiss Financial Markets Supervisory Authority, agreed to assist the Fed in executing the order (available to download here).
The US Department of Treasury’s Office of Foreign Assets Control (OFAC), along with the US Department of Justice and the New York County District Attorney’s Office, separately announced a $536m settlement with Credit Suisse. The firm will pay $268m each to the US and to New York.
It marks the largest settlement in OFAC’s history.
K, well what the hell could $CS have done that was so bad?
“Credit Suisse routed transactions through the United States surreptitiously, while knowing that those payments would be blocked or rejected if their true nature had been clear,” said OFAC director Adam Szubin.
According to the Treasury, Credit Suisse used “elaborate procedures” to alter payments and conceal the involvement of sanctioned parties from the US banks involved in the transactions. In some cases, Treasury said, Credit Suisse even stripped the names of sanctioned parties from payment instructions and forwarded payment messages to US financial institutions that falsely identified Credit Suisse as the ordering institution.
Well WTF, why is the Fed cracking down on Credit Suisse when they themselves did exactly the same thing? Had American taxpayers known the true nature of the AIG bailout, Goldman Sachs payout would have been blocked too, duh!