[Congressional Record Volume 169, Number 153 (Thursday, September 21, 2023)]
[Senate]
[Pages S4643-S4644]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
Credit Suisse
Mr. GRASSLEY. Mr. President, earlier this year, Chairman Whitehouse
and I began bipartisan work to investigate Credit Suisse's historical
servicing of Nazi-linked accounts. Today, I would like to discuss this
important bipartisan work and thank Senator Whitehouse and his staff
for their assistance on this very important topic.
In March of 2020, Simon Wiesenthal Center notified Credit Suisse that
it found previously undisclosed information relating to the bank's Nazi
ties. The bank, to its credit, initially took steps in the right
direction and agreed to investigate. It even retained a research firm
to conduct a forensic review. It even retained former TARP Inspector
General Neil Barofsky to oversee that review as an independent
ombudsman, and they also had U.S. Envoy Ira Forman as an independent
adviser.
But after Credit Suisse hired a new general counsel--so a new person
stepped in--the bank paused its review, limited experts' access to
records, and terminated Barofsky and Forman; very odd acts to take
compared to the positive start of this investigation.
Anyway, the bank cited performance issues for the termination. Well,
the then-general counsel's predecessor never expressed those concerns,
and the bank's research firm described Barofsky as professional. And I
happen to know some of Barofsky's work, and he is, in fact, a
professional.
Barofsky drafted a report about what he observed at the bank and
found, as he was contractually obligated to do. So Chairman Whitehouse
and I issued the Budget Committee's first subpoena since 1991 to obtain
that report.
Credit Suisse had prevented Barofsky from providing us a fully
unredacted report. Ultimately, we not only obtained that report fully
unredacted but also the bank's own report.
So then what did Chairman Whitehouse and I find? Credit Suisse did
not review and investigate all relevant records. For example, Credit
Suisse did not use a full dataset from its predecessor's bank.
It inconsistently collected and reviewed information such as account
balances. Credit Suisse failed to review allegations that Nazi heirs
had sought access to bank accounts.
When the review pointed to evidence of wrongdoing beyond Argentina,
Credit Suisse stated the information was ``out of scope'' and then
didn't do any investigation.
Now, even after those limitations, the reports revealed new
information, including nearly 100--and let me emphasize ``100''--
previously undisclosed Nazi-linked accounts. Some accounts remained
open as recently as the year 2020.
And when we finally got an unredacted version, it showed evidence
that 64,000--let me emphasize ``64,000''--sets of potentially relevant
records related to Nazi-linked accounts were not part of the
investigation.
Credit Suisse claims that they are irrelevant without giving us a
sufficient explanation. Credit Suisse also blocked its independent
oversight that included Barofsky, Forman, and also a historian hired to
assist the investigation from accessing critical evidence.
The reports also raised brandnew questions about the bank's potential
support for Nazis fleeing justice following World War II via the
infamous ratlines.
Until pressured by Chairman Whitehouse and me, Credit Suisse had
refused to fully investigate allegations of its potential role aiding
Nazis' escape from justice via the ratlines.
So, today, despite multiple requests, Credit Suisse still refuses to
share exact details on the scope of its ongoing ratlines review. This
is unacceptable.
And do you know what else is unacceptable? Credit Suisse's actions
after we made those reports public are unacceptable. The bank issued a
press release on April 19 of this year filled with one excuse after
another. The bank's press release essentially ignored its own report.
It also incorrectly claimed
[[Page S4644]]
full cooperation with the committee's oversight, despite the bank
objecting to the committee receiving a fully unredacted copy of the
Barofsky report until July 31 and despite failing to provide a full
report of the ratlines review.
Then, the bank petitioned a Federal court against the Simon
Wiesenthal Center. The bank says that litigation from the 1990s
provided full disclosure in all matters related to the Holocaust and
World War II.
Now, this seems to me that the bank is trying to silence a
prominent--very prominent--Jewish human rights organization.
Ironically, as the bank continues down this road, it appears to be
creating a modern-day ``David versus Goliath'' story.
Notably, it was the bank that initiated the new review that I have
discussed with my fellow Senators here today. Credit Suisse
acknowledged the potential for the investigation to result in
settlements or restitution. The fact that the bank has since agreed to
fully review its reported role with the ratlines also shows that we are
dealing with a whole new set of facts. But now let's take a step back.
I have listed numbers, and I have listed figures. Let's not forget
that we are talking here about, not facts and figures, we are talking
about real people, victims of atrocities perpetrated through the
Holocaust. Credit Suisse--and now UBS as the new owner--must embrace
the sunlight, which, of course, we all know in government is the best
disinfectant.
So here is my advice: Accept the historical facts and own those
facts. They ought to play a positive role in exposing the historical
evils of the Nazis once and for all.
Credit Suisse--and now UBS--has a responsibility to expose all
information related to its historic servicing of Nazis during and also
following World War II. They owe it to the Holocaust victims,
survivors, and to the world community.
This information is very critical to a more complete record, and it
will also allow us to learn from history, to create a more peaceful,
just future. We must learn from history to prevent the mistakes of the
past, from those mistakes being repeated again.
Simon Wiesenthal once said:
Justice for crimes against humanity must have no
limitations.
So I encourage Credit Suisse and UBS to bring this matter to a
positive conclusion worthy of history's eyes.
I yield the floor.
The PRESIDING OFFICER. The Senator from Rhode Island.
Mr. WHITEHOUSE. Mr. President, this year, with full bipartisan
support, the Senate Budget Committee issued its first subpoena in more
than 30 years.
Ranking Member Grassley has just recounted how his office received
credible information about Credit Suisse's historical servicing of Nazi
clients and their enablers, and the Budget Committee responded by
issuing a subpoena compelling the production of relevant documents.
Senator Grassley and his team brought this request to me and my team,
and I thank him for bringing this to the committee and for his
commitment to pursuing justice for Holocaust survivors and their
families.
When we first launched this investigation, I said and I will say it
again: When presented with credible evidence of Credit Suisse's Nazi
ties, the Budget Committee had an obligation to investigate.
The subpoenaed records shined new light on the extent of Credit
Suisse's Nazi ties, uncovering nearly 100 previously undisclosed Nazi-
linked accounts and related information. Our investigation revealed the
servicing of many of those accounts until as recently as 2020.
For all that this investigation revealed, it also raised new
questions about Credit Suisse's role in supporting Nazis fleeing
justice following World War II via so-called ratlines. Because of the
Budget Committee's investigation, Credit Suisse has expanded the scope
of its internal investigation to look into those questions. The bank
has committed to producing followup reports prepared by its forensic
accountants, ombudspersons, and the bank itself in the coming weeks. We
stand ready on the committee to pursue whatever information will fully
shine light into this dark chapter.
I will take this opportunity to talk about the importance of strong
congressional oversight. Many see Congress only as our Nation's
legislative body. While legislating is certainly our most recognizable
function, our oversight and investigative functions are not to be
overlooked.
As the Supreme Court recognized in 1927, ``The power of inquiry with
process to enforce it is an essential and appropriate auxiliary to the
legislative function. . . . A legislative body cannot legislate wisely
or effectively in the absence of information respecting the conditions
which the legislation is intended to affect or change.''
Recently, in the case of Trump v. Mazars, the Supreme Court said of
Congress that ``[w]ithout information, Congress would be shooting in
the dark, unable to legislate wisely or effectively.''
So investigations like ours demonstrate what good congressional
oversight can achieve: advancing transparency, pursuing justice,
ensuring corporate accountability.
Whether it is holding companies responsible for their involvement
with the Nazis, as in this case, or shining light on companies that are
poisoning our planet while making hard-working Americans foot the bill
or just promoting good, transparent corporate citizenship, I pledge, as
chairman of the Budget Committee, to determine who is complicit in the
looming systemic risks to the Federal budget and the U.S. economy.
Especially where we work together across the aisle, we can accomplish
big goals on behalf of the American people. That is why I partnered
with Ranking Member Grassley on this investigation, and that is why our
staffs continue to work together on other investigations.
Senator Grassley, thank you again for bringing this matter to the
committee. Thank you for your passionate pursuit of this issue. I share
your commitment to leaving no stone unturned.
I yield the floor.
I suggest the absence of a quorum.
The PRESIDING OFFICER. The clerk will call the roll.
The senior assistant legislative clerk proceeded to call the roll.
Mr. CARDIN. Mr. President, I ask unanimous consent that the order for
the quorum call be rescinded.
The PRESIDING OFFICER. Without objection, it is so ordered.