The Truth Behind UBS’ Involvement in the Credit Suisse Nazi Accounts Scandal
The head of UBS’ Americas arm and the lender’s top lawyer are both scheduled to testify at a U.S. Senate hearing next week into Nazi-era accounts at Credit Suisse, the scandal-hit rival it acquired in 2023.
Key Figures to Speak at Senate Hearing
Robert Karofsky, a potential successor to UBS CEO Sergio Ermotti, and group general counsel Barbara Levi have been added to the list of witnesses scheduled to speak on Feb. 3 at the Senate judiciary committee hearing in Washington.
Simon Dawson/Bloomberg
“We look forward to engaging in a productive discussion with the Committee regarding Credit Suisse’s historic issues,” UBS said in a statement on Monday when asked about their upcoming appearance.
Rabbi Abraham Cooper of the Simon Wiesenthal Center and Neil Barofsky, the independent ombudsman overseeing the investigation into the Credit Suisse accounts, will also speak at the hearing entitled, “The Truth Revealed: Hidden Facts Regarding Nazis and Swiss Banks.”
Uncovering Dark Secrets from the Past
The campaign for the hearing was initiated by U.S. senators Chuck Grassley and Sheldon Whitehouse to ensure Credit Suisse’s cooperation in the search for evidence of Nazi accounts left out of a landmark 1998 settlement that saw Swiss banks pay $1.25 billion for their handling of Holocaust victims’ accounts.
A 2020 report by the Simon Wiesenthal Center uncovered a list of 12,000 Nazis living in Argentina who had contributed money to accounts at a predecessor bank of Credit Suisse as they fled at the end of World War II.
UBS’ Ongoing Challenges
The issue of Nazi accounts has become a significant challenge for UBS since acquiring Credit Suisse in 2023. The bank is under pressure to cooperate with regulators and address the historical legacy of these accounts as it expands its wealth management business in the U.S.
UBS has committed to a thorough review of the Credit Suisse archives related to Nazi-linked legacy accounts and is providing full assistance to facilitate the investigation led by Neil Barofsky.
Ronald Lauder, president of the World Jewish Congress, highlighted the incomplete nature of the 1998 settlement and the potential financial implications of not having full records of Nazi accounts.
Ongoing Investigations and Challenges
Barofsky’s investigation uncovered volumes of previously undiscovered material in Credit Suisse’s archives, including records of accounts for an SS-run company. Despite facing obstacles and obstruction, Barofsky continues his work to shed light on this dark chapter of history.
UBS faces the challenge of addressing the legacy of Nazi accounts while maintaining its reputation and business operations in the U.S. market.
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