U.S. Reps. Stephen Lynch (D-MA) and Carolyn Maloney (D-NY) are seeking information from Credit Suisse about its compliance with international economic sanctions on Russia for its invasion of Ukraine.
The query comes after reports that said Credit Suisse instructed investors to “destroy and permanently erase” certain information, potentially including assets related to sanctioned Russian oligarchs close to Vladimir Putin.
“We are writing to seek information about a recent report that Credit Suisse asked hedge funds and other investors to destroy documents regarding yachts and private jets owned by Credit Suisse’s clients. This report raises significant concerns about Credit Suisse’s compliance with the severe sanctions imposed by United States and its allies and partners on the architects and enablers of Russia’s brutal and unprovoked invasion of Ukraine, including Russian President Vladimir Putin and oligarchs in his inner circle,” Lynch and Maloney wrote to Credit Suisse CEO Thomas Gottstein.
At the end of 2021, Credit Suisse sold off risk related to a $2 billion portfolio of loans backed by yachts, private jets, and other assets owned by the bank’s wealthiest clients. Credit Suisse disclosed in an investor presentation that in prior years, borrowers defaulted on these loans due to “U.S. sanctions against Russian oligarchs.” The lawmakers said this is an apparent reference to Russian oligarchs Oleg Deripaska and Arkady and Boris Rotenberg, who were forced to sell their jets due to U.S. sanctions.
Press reports alleged that Credit Suisse sent a letter to hedge fund managers and other investors instructing them to “destroy and permanently erase” any confidential information Credit Suisse provided in relation to the securitization deal transaction. This directive coincided with Switzerland’s announcement that it would join the United States, the European Union, and countries worldwide in imposing economic sanctions on Russia in response to its unprovoked and unjustified invasion of Ukraine.
Lynch and Maloney are requesting that Credit Suisse produce information and documents related to the securitization deal by April 11. Lynch is chair of the House Subcommittee on National Security, while Maloney chairs the Committee on Oversight and Reform.