Credit Suisse Reveals Nazi-Linked Accounts
In a significant internal probe, Credit Suisse has found 890 accounts possibly linked to the Nazis in banks that previously helped Adolf Hitler’s regime and assisted his associates in escaping to Argentina. This startling information will be presented to Congress during a hearing set for Tuesday.
The investigation faced delays, largely due to Ombudsman Neil Barofsky being inactive for over a year, Senate Judiciary Committee Chairman Chuck Grassley (R-Iowa) mentioned, sharing some early findings with reporters.
Around 900 accounts have been identified, raising questions about hundreds of millions of dollars involved. The issue of Credit Suisse’s dealings with Nazi-associated loans will dominate the Senate hearing, although it’s uncertain whether these revelations will reinvigorate discussions about past settlements exceeding $1 billion with Holocaust survivors from over two decades ago.
Rabbi Abraham Cooper from the Simon Wiesenthal Center and executives from UBS are scheduled to testify at the Judiciary Committee hearing, aptly titled “The Truth Revealed: The Hidden Facts About Nazis and Swiss Banks.”
Grassley expressed, “The current investigation aims to ensure that no further evidence is lost.” He added that the accounts in question were used by those who contributed to or supported the Nazi war effort, including assets tied to the German Foreign Ministry and defense contractors.
He further noted that new records suggest Credit Suisse’s banking engagements with the Nazi SS were broader than previously understood, highlighting that the Nazi economic division maintained an account at the bank, which had earlier profits partially reported by Switzerland but lacked full transparency.
Barofsky is expected to deliver detailed remarks regarding the inadequacy of Credit Suisse’s initial investigations from the 1990s, according to sources within the Senate.
Grassley and Senator Sheldon Whitehouse (D-RI) have taken measures to ensure that Credit Suisse adheres to conditions laid out in a 1998 court settlement that mandated the bank’s contribution of over $1.25 billion to Holocaust victims. However, last year’s comments from the negotiator indicated that new information implies the original parties were negotiating without a full understanding.
World Jewish Congress President Ronald Lauder remarked in a Bloomberg interview, “We might be overlooking $5 billion to $10 billion.” This highlights the massive financial oversight stemming from the investigation.
The Simon Wiesenthal Center revealed in a report from 2020 that thousands of Nazis who fled to Argentina had prior accounts at Credit Suisse. This revelation far exceeds previous estimates of just around 100 Nazi-related accounts that forensic teams at AlixPartners had identified.
Barofsky was appointed independent monitor years ago to supervise the review of these accounts, a process that wound down in 2022. His return to oversee the investigation in December 2023 came following pressure from Grassley, Whitehouse, Lauder, and others.
President Javier Millay of Argentina has also supported Grassley’s oversight efforts by disclosing archival records that detail how Nazis escaped to Latin America after World War II. Grassley explained that Credit Suisse even leased properties for the Argentine government to facilitate this effort.
Executives from UBS, which acquired Credit Suisse through an emergency takeover nearly three years ago, will also be present for the testimony, aiming to discuss Credit Suisse’s historical issues.
In a filing last month, UBS attorneys requested that all parties involved in the original settlement refrain from enabling or escalating public debate on these matters, while also opposing any new financial demands or statements that contradict legal guidelines.
Attorneys for the Simon Wiesenthal Center objected to this order, emphasizing their commitment to investigate and unveil the full extent of the anti-Semitic actions carried out by the Nazis throughout history.
As the hearing approaches, anti-Semitic incidents have spiked significantly in the U.S., with a reported 893% increase noted from 2015 to 2024, according to the Anti-Defamation League.
Grassley expressed hope that by making many of the findings public, they will serve as a permanent record accessible to researchers for future generations. Barofsky is anticipated to release a final report summarizing his investigations later this year.
A UBS representative hinted at looking forward to a constructive dialogue with the committee regarding the historical issues surrounding Credit Suisse.
