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Democrats Want to Scrutinize Labor Waiver for Credit Suisse

By Patrick Temple-West, Politico

House Democrats today called for a hearing to question whether the Labor Department should allow Credit Suisse, the Swiss banking giant that settled tax evasion crimes with the government in May, to continue doing business in the United States.

Because Credit Suisse pleaded guilty, the bank needs a waiver from the Labor Department to continue its asset management services for pension funds. In September, the agency proposed a waiver that is now open for public comment.

In an Oct. 9 letter to Labor Secretary Thomas Perez released today, the House Democrats requested a hearing and said the agency has granted waivers to all 23 businesses that have requested one since 1997.

“Reflexively granting waivers may enshrine a policy of too big to bar,” said Representatives Maxine Waters, Stephen Lynch and George Miller.

In May, Credit Suisse agreed to plead guilty and pay more than $2.6 billion to settle charges it helped Americans dodge taxes.

The bank is scheduled to be sentenced in court on Nov. 1, and has said it needs the Labor Department waiver before that date to continue its U.S. operations.

Earlier this year, Senate Democrats Sherrod Brown and Elizabeth Warren raised concerns that waivers granted to companies after they sign settlements help mitigate their punishment.

At the Securities and Exchange Commission, Democratic Commissioner Kara Stein has objected to SEC waivers to Royal Bank of Scotland, BNP Paribas and Citigroup.
 
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