The Wall Street Journal reports that Neil Barofsky, the former US prosecutor assigned by a New York regulator in 2014 to monitor Credit Suisse after a tax-evasion scandal in the US, will stay longer with the bank. It seems that the bank has not been able to provide all of the information at the pace and volume that he required.
This has an important cost for Credit Suisse. Accoding to the WSJ ‘for the second quarter of this year, Credit Suisse disclosed expenses including the cost of the monitor that amounted to c.a. $66m. The figure rose to $68m for the third quarter’. The bank has not reported fourth-quarter results yet.
Neil Barofsky is one of the monitors recently placed at big banks, as regulators seek to deter future misbehaviour. For example, Deutsche Bank AG and HSBC Holdings PLC were also assigned monitors by US regulators.