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Credit Suisse, Mexico Networks, Fraud Appeal: Compliance

Thousands of Credit Suisse Group AG (CSGN)’s U.S. clients still don’t know whether tax authorities will learn their identities as prosecutors work to conclude a three-year probe of how the bank helped them evade taxes.

U.S. senators last month faulted the Justice Department for securing names for only 238 of 22,000 Americans with Credit Suisse accounts, saying the bank helped them hide as much as $10 billion from the Internal Revenue Service. Credit Suisse is the largest of 14 Swiss banks under criminal investigation for helping Americans cheat the IRS.

At the Feb. 26 Senate hearing, Chief Executive Officer Brady Dougan apologized, saying a small group of Swiss-based bankers appear to have broken U.S. law and fooled top managers. The bank began slashing its U.S. client list in 2008, and the 3,500 remaining comply with U.S. tax laws, General Counsel Romeo Cerutti said.

Senator Carl Levin, the Michigan Democrat who led the hearing, said that wasn’t enough. He criticized the Justice Department for failing to enforce grand jury subpoenas or file civil actions to identify account holders, drawing a comparison to the case five years ago against UBS AG (UBSN), which ultimately resulted in the release of data on 4,450 accounts.

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Mexico Forces Network-Sharing to Rein in America Movil, Televisa

Mexico’s telecommunications regulator unveiled network-sharing requirements and price restrictions for its top phone and media companies, part of a bid to cut the market share of America Movil SAB (AMXL) and Grupo Televisa SAB. (TLEVICPO)

Televisa will be required to let competitors use its broadcast towers for a set fee and must publish its advertising prices publicly, the company said March 7 in a statement. While America Movil had yet to confirm it has received instructions from the Federal Telecommunications Institute, the agency said it would require the dominant telecommunications company to share its network.

The measures are the culmination of President Enrique Pena Nieto’s work with lawmakers from all three major parties to tackle the lack of competition in industries that economists say are essential for growth.

Compliance Action

BP Says Japan, Korea Seek Information on Oil-Price Manipulation

BP Plc (BP/) said regulators in Japan and Korea sought information regarding potential manipulation of oil prices, amid probes in Europe and the U.S.

The U.S. Commodity Futures Trading Commission requested price-reporting documents from BP in January, BP said.

Spokesmen for the Fair Trade Commissions of Japan and Korea declined to comment when reached by phone.

Courts

JPMorgan, UBS Convictions Overturned in Swaps Fraud Appeal

JPMorgan Chase & Co. (JPM), Deutsche Bank AG, UBS AG and Depfa Bank Plc won a bid to overturn a conviction for overseeing fraud by their bankers in the sale of derivatives to the city of Milan.

An appeals court in Milan cleared the banks and individuals at the firms because “the alleged crimes didn’t take place,” Judge Luigi Martino said as he read out the verdict March 7.

In the appeals trial, prosecutor Piero de Petris had argued that the banks, in their roles as advisers to the municipality, should have disclosed how much the derivatives were costing the borrower.

Defense lawyers cited testimony by municipal officials during the lower-court trial as proof the city was aware the four banks were making money on the trades and of the magnitude of those commissions.

To contact the reporter on this story: Carla Main in New York at cmain2@bloomberg.net

To contact the editors responsible for this story: Michael Hytha at mhytha@bloomberg.net Andrew Dunn, Stephen Farr

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