Credit Suisse's £130m to halt German case

In another major embarrassment for the Swiss banking industry Credit Suisse today paid German authorities 150 million (£130.3 million) to halt criminal proceedings against some of its staff accused of helping tax evasion.

Credit Suisse's German offices were raided last year and prosecutors claimed employees had helped some 1100 clients hide funds from the tax authorities.

The raid came after German intelligence bought a CD Rom containing data on thousands of secret bank accounts.

The bank said that today's settlement "means that a complex and prolonged legal dispute can be avoided for all parties concerned". Credit Suisse's payment is higher than that of smaller rival Julius Baer, which earlier this year agreed to pay German tax authorities 50 million to close a tax probe and avoid potential legal action against the bank and its employees in the country.

Credit Suisse is still being investigated by US tax authorities over similar claims there.
Two years ago UBS paid $780 million and supplied data of US clients to settle a case taken against it over tax evasion.