Credit Suisse reinstates ombudsman amid Nazi account probe

Credit Suisse has reinstated Neil Barofsky as its ombudsperson following scrutiny from U.S. senators over the bank’s investigation into accounts with ties to Nazis during World War II. The move comes as part of an ongoing probe led by Senators Chuck Grassley and Sheldon Whitehouse, who have been vocal in their demand for greater transparency from the Swiss bank.

The reinstatement of Barofsky, announced on Monday, is a significant step in addressing concerns raised about Credit Suisse’s investigative processes. Previously, a document authored by Barofsky had been subpoenaed, which suggested that Credit Suisse did not thoroughly investigate its past dealings with Nazi-linked accounts. This claim was initially denied by the bank in April but gained credibility after the release of an unredacted report that showed incomplete record reviews.

The lawmakers’ joint statement criticized Credit Suisse for its initial decision to terminate Barofsky without clear justification and highlighted the necessity for a candid evaluation of the bank’s historical transactions. The Senate committee’s probe into these matters underscores the ongoing efforts to bring clarity and justice to issues related to looted assets during wartime.

This development is set against the backdrop of UBS Group AG (SIX:)’s recent acquisition of Credit Suisse. However, UBS has not commented on Barofsky’s reinstatement or the ongoing investigation. The situation harks back to a historic $1.25 billion settlement reached with families of Holocaust victims over claims of looted assets during the war, reflecting the long shadow such historical issues cast on modern financial institutions.

The appointment of Barofsky as ombudsperson is expected to provide an independent review that could shed light on Credit Suisse’s actions during a dark chapter in history and ensure that such allegations are addressed with the seriousness they deserve.

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