Credit Suisse in steep loss after US tax case

GENEVA (AP) -- Credit Suisse, Switzerland's second-biggest bank, posted a second-quarter net loss of 700 million Swiss francs ($779 million) Tuesday after paying the largest penalty ever imposed in a U.S. criminal tax case.

The steep loss contrasted sharply with the profit of 1.045 billion francs ($1.16 billion) it posted in the April-June period a year ago. It resulted in what the bank called a final settlement of the U.S. government's case against the bank for helping wealthy Americans avoid paying taxes through secret offshore accounts.

The Zurich-based bank pleaded guilty in May to aiding U.S. tax evaders and agreed to pay about $2.6 billion to the U.S. government and regulators, allowing it to put the criminal investigation behind it.

"I want to reiterate that we deeply regret the past misconduct that led to this settlement and that we take full responsibility for it," Chief Executive Brady Dougan said in a statement. "The continued trust and support of our clients helped us mitigate the impact of the settlement on our business."

The bank took a charge of 1.6 billion Swiss francs ($1.78 billion) as part of its settlement over the U.S. tax evasion charges.

Credit Suisse announced it has exited commodities trading, a move that it says will allow it to transfer resources to shore up its private banking.

It also said it had trimmed its worldwide staff to 45,100 by the second quarter from 46,300 a year earlier, and has already cut costs by 3.4 billion francs out of a total 4.5 billion francs it plans to cut by the end of next year.

Shares of Credit Suisse AG closed down nearly 1 percent at 25.84 francs Tuesday on the Zurich exchange.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


Top Stories

  • Does This Make Sense?
    Jason Rantz questions Inslee's plan to fund transportation with carbon pollution tax

  • Big Release
    Michael Medved takes a look at whether the latest Hobbit film is worth your interest

  • Holiday Map
    Find holiday events, Santa photo opportunities, and light displays
ATTENTION COMMENTERS: We've changed our comments, but want to keep you in the conversation.
Please login below with your Facebook, Twitter, Google+ or Disqus account. Existing MyNorthwest account holders will need to create a new Disqus account or use one of the social logins provided below. Thank you.
comments powered by Disqus
Sign up for breaking news e-mail alerts from MyNorthwest.com
In the community
Do you know an exceptional citizen who has impacted and inspired others?
KIRO Radio and WSECU would like to recognize six oustanding citizens this year. Nominate them to be recognized and to receive a $2,000 charitable grant.