The speaker, Mr. Grassley, discusses a bipartisan investigation into Credit Suisse's Nazi-linked accounts. In March 2020, the Simon Wiesenthal Center informed Credit Suisse of previously undisclosed information related to the bank's Nazi ties. Credit Suisse initially agreed to investigate and even retained a forensic review firm and Leo Barofsky, the former TARP Inspector General, to oversee the review as an independent ombudsman. However, after hiring a new General Counsel, the bank paused its review, limited experts' access to records, and terminated Barofsky and Ira Foreman.
The speaker and Chairman Whitehouse issued the Budget Committee's first subpoena since 1991 to obtain a report drafted by Barofsky about what he observed at the bank. The bank only provided a redacted version of Barofsky's report. The reports revealed new information, including nearly 100 previously undisclosed Nazi-linked accounts. Some of these accounts remained open as recently as 2020. The reports also raised new questions about the bank's potential support for Nazis fleeing justice following World War II via the infamous Rat Lines.
Credit Suisse has been accused of refusing to fully investigate allegations of its potential role aiding Nazis escaped from justice via the Rat Lines. The bank has since issued a press release filled with excuses, claiming full cooperation with the committee, despite objecting to receiving a fully unredacted copy of the Barofsky report and failing to provide a full report of the Rat Lines review. Credit Suisse has also petitioned a federal court against the Simon Wiesenthal Center.
The speaker advises Credit Suisse and its new owner, UBS, to embrace transparency and expose all information related to its historical servicing of Nazis during and after World War II. The speaker emphasizes the importance of learning from history to prevent past mistakes from being repeated and to create a more peaceful and just future.
1. In March 2020, the Simon Wiesenthal Center notified Credit Suisse that it found previously undisclosed information related to the bank's Nazi ties.
2. Credit Suisse initially agreed to investigate and retained a research firm to conduct a forensic review. It also hired Leo Barofsky, a former TARP inspector general, to oversee the review as an independent ombudsman, and Ira Forman, a U.S. envoy, as an independent advisor.
3. After Credit Suisse hired a new general consul, the bank paused its review, limited experts' access to records, and terminated Barofsky and Forman.
4. The bank cited performance issues for the termination.
5. Credit Suisse did not review and investigate all relevant records. For example, it did not use a full data set from its predecessor's bank and did not review allegations that Nazi heirs sought access to bank accounts.
6. When the review pointed to evidence of wrongdoing beyond Argentina, Credit Suisse stated the information was out of scope and did not carry out any investigation.
7. The reports revealed new information, including nearly 100 previously undisclosed Nazi-linked accounts and evidence that 64,000 sets of potentially relevant records related to Nazi-linked accounts were not part of the investigation.
8. Credit Suisse claims that these records are irrelevant without providing a sufficient explanation.
9. Credit Suisse also bought its independent oversight, which included Barofsky, Forman, and an historian hired to assist the investigations from accessing critical evidence.
10. The reports raised new questions about the bank's potential support for Nazis fleeing justice following World War II via the infamous Rat Lines.
11. Credit Suisse still refuses to share exact details on the scopes of its ongoing Rat Line review.
12. The bank petitioned a federal court against the Simon Wiesenthal Center.
13. Credit Suisse acknowledged the potential for investigating to result in settlements or restitution.
14. Credit Suisse and now UBS must embrace the sunlight, which is the best disinfectant in government.
15. Credit Suisse and now UBS has a responsibility to expose all information related to its historical servicing of Nazis during and also following World War II.
16. Credit Suisse and now UBS owes it to the Holocaust victims, survivors, and to the world community.
17. This information is very critical to a more complete record, and it will also allow us to learn from history to create a more peaceful, just future.
18. We must learn from history to prevent the mistakes of the past from being repeated again.
19. Credit Suisse and now UBS is encouraged to bring this matter to a positive conclusion worthy of history's eyes.
20. This year with full bipartisan support, the Senate Budget Committee issued its first subpoena in more than 30 years.