Death and taxes, my friends. From Reuters:
Credit Suisse Group AG is expected to plead guilty and pay more than $2.5 billion to U.S. authorities to resolve charges that the Swiss bank helped Americans evade U.S. taxes, people familiar with the discussions said on Thursday.
Under the terms being discussed, about $2 billion would go to federal authorities, mainly the U.S. Justice Department. About $100 million would go to the Federal Reserve, the people said.
An anonymous source is also cited as saying Credit Suisse might even be willing to pay more than $2.5 billion but then its credit rating would be at risk.
A settlement could come as early as next week, the sources said, but it could get pushed back as final details are ironed out.
Credit Suisse is expected to plead guilty as part of the settlement, the people said, a rare result for a financial institution accused of misconduct.
If any information about the timeframe for payments crosses the wires I’ll get that to you here. If you’re of the mind to short the Credit Suisse stock on this news I’d say you are probably late to the party. It has already taken a 5% haircut since rumors of the lawsuit came about.
