The Justice Department in the US is probing Credit Suisse bank to assess whether bank employees have helped clients in Israel to evade US taxes.
In a report, The Wall Street Journal , quoting the Justice Department regarding the Credit Suisse tax probe said it is determining whether employees in Israel helped dual Israeli and US citizens to avoid American taxes.
The bank had put five employees on leave who were working on the Israel desk. In the Credit Suisse tax probe, the focus will be on employees who were handling initial public offerings for Israeli technology companies.
A spokesman for the Justice Department refused to comment on the report. As for Credit Suisse tax probe, it was highlighted that the bank is conducting its own internal investigation, according to an e-mailed statement.
“The investigation is not linked to potentially fraudulent behaviour to the detriment of clients,” the bank said in a statement.
“Credit Suisse is committed to running its business in a tax-compliant manner. It conducts its banking business in strict compliance with all applicable laws, rules and regulations in the markets in which it operates.”
The WSJ report said, Credit Suisse tax probe into the Israel accounts may develop new charges in the US against Credit Suisse and its bankers. It is likely that the probe will enhance harsh regulatory scrutiny on the bank.
Meanwhile, Credit Suisse made an impact assessment of the Brexit referendum and said if it is advisory then it will not be legally binding. But invoking Article 50 of the Treaty on the European Union can separate a member nation from the EU over a two-year period.
In a revised outlook on stock markets, Credit Suisse analysts said, “Into a full Brexit scenario, our FTSE 100 year-end target would fall to 6,200 from 6,600.”
Credit Suisse’s Andrew Garthwaite wrote. “We would also take our S&P 500 year-end target to 2,000 from 2,150, and our Euro Stoxx 50 target to 2,950 from 3,350.”
“Our key concerns with regard to equities are: i) equities are overall priced at fair value; ii) we forecast almost no US earnings growth; and iii) there is unusually high political, economic and business model risk at a time when governments are trying to redress the imbalance between owners of capital and labour,” he added, according to Yahoo Finance.