Thomas Perez, the Labor Secretary, and a potential replacement for Attorney General Eric Holderfaces a critical political test in deciding on whether to waive sanctions on Credit Suisse or not. As the bank pleaded guilty in May, it needs a waiver to continue to oversee pension fund investments and keep its ‘Qualified Professional Asset Manager’ designation
Companies need a “Qualified Professional Asset Manager” designation to oversee pension fund investments. Engaging in misconduct automatically strips a company of the designation, unless it is granted an exemption by the Labor Department. The department has extended waivers to all 23 firms that have sought waivers since 1997, including UBS bank.
Waters, Miller, and Lynch, members of the House of Representatives, call for hearing on the proposal by the Department of Labor to waive sanctions on Credit Suisse.