U.S. regulators are currently investigating banks to identify if they evaded Russian sanctions. Switzerland-based Credit Suisse and UBS Bank are among the institutions under the radar of the Department of Justice.
Also read: UBS to acquire Credit Suisse bank for $2 billion
Specifically, the DOJ intends to identify bank employees that dealt with sanctioned clients and how those clients were vetted over the past several years. Those bankers and advisers could be subjected to further investigation to find out if they violated any federal laws.
U.S. banks were also sent subpoenas
Citing people familiar with the matter, Bloomberg reported that the government sent out a “wave of subpoenas” recently. Notably, the information requests preceded the Credit Suisse crisis and UBS’s subsequent takeover proposal. Additionally, two unnamed sources told Bloomberg,
“Subpoenas also went to employees of some major U.S. banks.”
Russia’s invasion of Ukraine ensured expanded sanctions. However, before they were imposed, Credit Suisse was known to cater to wealthy Russians. According to Bloomberg, at its peak, the bank managed more than $60 billion for Russian clients. Notably, they generated between $500 million and $600 million a year in revenue for Credit Suisse.
However, when the bank ceased operations with individual Russian clients last May, Credit Suisse’s AUM for Russian clients dropped to $33 billion. That figure was reportedly 50% more than UBS. Now, nonetheless, the situation is chalk-and-cheese. After negotiations, Credit Suisse and UBS finalized a buyout deal recently. As reported by Watcher Guru, UBS agreed to purchase Credit Suisse for over $2 billion.
Alongside the latest development, U.S. regulators have been scrutinizing other well-known companies from the crypto space as well. Just a day back, the Securities and Exchange Commission sent Coinbase a Wells Notice and warned it of potential securities fraud.
Also Read: SEC Sends Coinbase Wells Notice, Warns of Potential Securities Charges