Credit Suisse Group AG agreed to a criminal wrongdoing as a part of a deal with the U.S. Justice Department for helping U.S. citizens to hide their wealth and income in offshore trusts.
The investment bank giant agreed to a single count of conspiring to aid tax evasion in a scheme that lasted decades and pay $2.6 billion in penalties.
The bank also agreed to hire an independent monitor to review operations in the U.S. and in Switzerland for up to two years.
The bank will pay $1.8 billion to the Justice Department, $100 million to the Fed and $715 million to New York State banking regulator.
The deal between the Justice Department and Credit Suisse was crafted in a way that will keep the bank from going out of business and not lead to cancellation of its banking license.
The felony criminal charge could lead the bank to losing its license but last week Securities and Exchange Commission voted to grant a temporary exemption according to sources in the Washing based regulatory agency.