Credit Suisse Faces US Tax Probe, Senate Inquiry Over Accounts

Credit Suisse is under investigation by the US Justice Department and a Senate inquiry for potentially aiding US account holders, particularly those with South American passports, in evading taxes. The bank has a history of similar issues, having paid a significant fine in the past. Currently, Credit Suisse faces financial challenges, with analysts predicting a capital shortfall. The bank is exploring restructuring options, including selling off units, but prefers not to raise capital due to low share prices. The situation has led to stock volatility and significant leadership changes.

What past action did Credit Suisse take to address its wrongdoing?

• Paid a fine and admitted to wrongdoing

• Denied all allegations

• Ignored the issue

• Filed for bankruptcy

What is the US Justice Department investigating about Credit Suisse?

• The bank's involvement in money laundering

• Whether the bank aided US account holders in tax evasion

• The bank's compliance with environmental regulations

• The bank's role in the 2008 financial crisis

How did the news of the investigation affect Credit Suisse's stock prices?

• US ADRs were down, but European stocks closed higher

• Both US and European stocks fell

• Both US and European stocks rose

• US ADRs rose, but European stocks fell

What financial challenge is Credit Suisse expected to face in 2024?

• A profit of 10 billion

• A debt of 2 billion

• A surplus of 5 billion

• A capital shortfall of 8 billion

What strategy is Credit Suisse considering to address its financial issues?

• Expanding into new markets

• Increasing employee salaries

• Acquiring new companies

• Spinning off some units and selling assets