The chairman of Credit Suisse, Urs Rohner, has warned that a long-running tax dispute over hidden Swiss bank accounts with the US could "easily escalate and spill over to rivals" if matters are not settled.
Rohner’s warnings follow the Swiss government saying that it hopes it is nearing a deal with US authorities over Swiss banks accused of assisting wealthy Americans evade billions in tax, according to Reuters.
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"Should the efforts to settle fail after nearly three years of intense negotiating, it could lead to an escalation of the fight. I can only warn of this," Rohner said, suggesting that a settlement is still hanging in the balance.
Rohner said, "What looks to be a painful solution at first glance is better for everyone than none at all."
Credit Suisse is one of the many banks being targeted directly by US authorities for assisting Americans evade taxes, following a US$780 million settlement with UBS in 2009.
At the end of 2012, the number of Swiss banks under investigation by the US Department of Justice (DoJ) increased to 13, including Credit Suisse, Geneva private bank Pictet and Bank Frey.
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By GlobalDataOn 1 May 2013, Stefan Buck, formerly head of private banking and member of the executive board at Bank Frey, was charged by the Manhattan US attorney for helping various US taxpayers hide their Swiss bank accounts and evade US taxes on income earned, alongside Edgar Paltzer, partner at Niederer, Kraft & Frey (NKF).
Earlier in April, UBS and Credit Suisse were named in a wide-spread investigation by The International Consortium of Investigative Journalists (ICIJ) into offshore tax evasion.
