Legal News

An Investigation Grows: HSBC, Credit Suisse Join UBS Tax Probe

By Ashby Jones

An investigation is growing. The NYT is reporting that a criminal investigation that started with UBS — over whether the Swiss bank helped wealthy Americans avoid paying taxes — could ensnare some others, namely Credit Suisse and HSBC. Click here, here, and here for earlier LB posts on the UBS situation.

According to the Times, the investigation into the latter two banks began around September and is focusing on whether the two banks helped wealthy American clients hide up to $30 billion in offshore accounts that went undeclared to the IRS. The investigations are at an early stage and, for now, have not focused on any executives, reports the Times.

The investigations into HSBC and Credit Suisse have reportedly emerged from information provided to prosecutors and are focused on the same kind of cross-border banking activities now under scrutiny at UBS. The information has emerged, in part, from high-level discussions between senior executives at HSBC and Credit Suisse in the wake of the UBS inquiry. “UBS was not alone in this,” said one of the people.

Neither bank provided comment to the Times; nor did the U.S. Attorney’s office in Manhattan.

Full post as published by Law Blog - WSJ.com on December 02, 2008 (boomark / email).