BERNE (Reuters) - Credit Suisse has lost a limited amount of business as a result of pleading guilty to charges that it helped wealthy Americans to evade taxes, the head of its private bank said on Monday.
The Zurich-based institution became the largest bank in decades to plead guilty to a U.S. criminal charge, agreeing to pay more than $2.5 billion in penalties to resolve its long-running dispute with the United States.
The investigation brought a rare criminal indictment for a major financial institution, raising fears it would hit business at Credit Suisse’s private bank and deter institutional clients.
“That has been very limited,” Hans-Ulrich Meister said in Berne when asked about loss of business during a roundtable discussion on Swiss banking. “We also had new business at the same time.”
Credit Suisse finance chief David Mathers last week said that trading revenue has been slightly disappointing so far this quarter, though not “out of kilter” with that of its peers.
Mathers said that both of Credit Suisse’s main businesses - investment banking and the private bank - had won new mandates since the guilty plea was announced.
Reporting by Joshua Franklin and Albert Schmieder; Additional reporting by Oliver Hirt in Zurich; Editing by David Goodman