Oct. 10 (Bloomberg) -- Congressional Democrats urged the Labor Department to “seriously consider” whether Credit Suisse Group AG deserves to continue managing U.S. pension fund assets after its guilty plea for helping Americans evade taxes.
Representatives Maxine Waters, Stephen F. Lynch and George Miller sent a letter to the Labor Department yesterday asking it to hold a public hearing on a waiver that Credit Suisse needs to retain its status as a so-called qualified professional asset manager. The Democrats said they’re concerned that banks aren’t being adequately punished for scandals ranging from interest ate manipulation to tax evasion.
“While law enforcement has tallied up record monetary settlements in response to this conduct, we remain concerned that our regulators are not using the full arsenal of tools available to protect the public and retirees from bad actors and to ensure that criminal behavior is appropriately deterred,” the representatives wrote in their letter.
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Credit Suisse oversees billions of dollars of assets for more than 100 pension plans, according to a July court filing by the Zurich-based bank. If the Labor Department declines its waiver request, Credit Suisse will lose its status as a qualified asset manager on its sentencing date, which is now scheduled for Nov. 21.
A Credit Suisse spokesman didn’t immediately respond to requests for comment.
Credit Suisse agreed in May to pay $2.6 billion in penalties and plead guilty to helping clients cheat on their taxes, making it the first global bank in decade to admit to a crime in a U.S. courtroom.
--With assistance from Cheyenne Hopkins in Washington.
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