How Credit Suisse "got off easy avoiding criminal indictments and naming 22,000 offshore tax-dodgers

Lynnley Browning of Newsweek reveals a potential blockbuster of a story in How Credit Suisse Got Off Easy. Browning presents evidence that not only did Credit Suisse avoid any criminal charges for its senior executives, but additionally inside sources reveal that they managed to avoid revealing, "the names of what a Senate subcommittee said were 22,000 tax-dodging Americans hiding up to $12 billion offshore through the bank."

While the $2.6 billion fine charged to Credit Suisse paid was hailed by the Justice Department as record breakiung,  Dougan even told investors that the $2.6 billion fine would have no material impact on the bank, and Robert Reich called it chump change for a financial empire this large. Now, Newsweek is making allegations of improper influence being exerted by Broderick Johnson, a lawyer and former lobbyist close to President Obama, who VCLib identifies as an adviser to Obama for America. Newsweek incorrectly identifies him as one of Obama's cabinet secretaries.  

In an ironic twist, which Newsweek learned about through two sources briefed on the matter, Credit Suisse was prepared to turn over some 7,500 American client names more than a year ago. But then the Swiss government told the bank some of its senior people would be looking at time in a Swiss prison if those names were revealed. ... Not only did Credit Suisse avoid ratting out its clients, but none of its executives were charged, even though the bank admitted to cloak-and-dagger tactics to derail the investigation, ranging from destroying account records to giving its tax-evading clients offshore credit cards and smuggling cash into the United States for them. The bank also avoided having its U.S. licenses covering banking and investment-adviser work revoked—which could have killed it.

This much is clear. What becomes less apparent is Newsweek's contention that Broderick Johnson intervened in a way that would be illegal or improper.

Newsweek has obtained emails of James Cole, who they describe as the number 2 person at the DOJ, asking one of the investigators on the Credit Suisse case for an update, and declaring “I got a call from Broderick Johnson who says the CEO wants to get this resolved.”

Newsweek sums up this part of the episode by saying "Johnson's intervention appears to have worked. 18 months later the corporation plead guilty to a single count of conspiring to commit tax evasion, and to pay the $2.6 billion fine for "having deceived the Justice Department, the Internal Revenue Service, the Federal Reserve and the Securities and Exchange Commission (SEC)."