Senate Budget Committee Investigation into Nazi-Linked Credit Suisse Accounts Yields Extensive New Findings, Reveals Bank’s Historic Pattern of Obstruction

Senate Budget Committee Investigation into Nazi-Linked Credit Suisse Accounts Yields Extensive New Findings, Reveals Bank's Historic Pattern of Obstruction

Independent Ombudsperson's Interim Update to Committee at Close of 118th Congress Provides New Details, Promises Comprehensive Final Report

WASHINGTON - Tens of thousands of documents uncovered as a result of a Senate Budget Committee investigation into Credit Suisse's World War II-era accounts indicate extensive new evidence of previously unknown or only partially known Nazi-linked account holders. The bank failed to disclose these accounts during prior investigations. Sens. Chuck Grassley (R-Iowa) and Sheldon Whitehouse (D-R.I.) spearheaded the investigation in their capacities as Budget Committee Ranking Member and Chairman, respectively, during the 118th Congress. The Committee's bipartisan inquiry has compelled a complete examination of Credit Suisse (now under the leadership of UBS) and its predecessor banks' records by a third-party forensics team from AlixPartners Ltd. The investigation is being overseen by Independent Ombudsperson Neil Barofsky, who had been fired by the bank but was reinstated as a result of the Committee's investigation.

At the request of Grassley and Whitehouse, Barofsky produced an interim update that reveals new details of Credit Suisse's servicing of Nazi clients and their enablers, which the Committee released today. Barofsky credits his review's progress as "a direct result of the Committee's oversight." Barofsky's investigation remains ongoing; a final report is expected by 2026.

"From the beginning, the Senate Budget Committee's bipartisan goal was to 'leave no stone unturned' in pursuit of justice for those wronged by Nazi atrocities. Our investigation has dug up more than just stones - we've found boulders. Credit Suisse hid additional evidence of Nazi ties for years, and even tried to conceal information from our congressional investigation. While the 118th Congress may be over, the work to shine light on the darkest corners of Credit Suisse's history continues. Ultimately, it's my hope to see these records preserved in a repository that researchers can reference to discover untold stories and future generations will learn from," Grassley said. "I'm grateful for Senator Whitehouse's partnership, the dedication of Neil Barofsky and his investigative team, and the newfound cooperation of Credit Suisse, under UBS's leadership, for contributing to this ongoing effort to set the historical record straight."

"Throughout this investigation, this Committee has been driven by a commitment to truth and justice for all who were victimized by Credit Suisse's historical servicing of Nazi accounts, including Holocaust survivors and their families," Whitehouse said. "I share Ranking Member Grassley's commitment to leaving no stone unturned when it comes to investigating Nazis and their enablers in the pursuit of transparency and accountability. Our inquiry has already exposed new details about Credit Suisse's servicing of Nazi clients and their enablers and has prompted UBS to take additional action to ensure a thorough review of all relevant records. As today's update from Mr. Barofsky makes clear, UBS's response to our investigation is already bearing fruit. I look forward to UBS's continued cooperation, and I remain committed to ensuring that this investigation leads to a thorough and complete report from Mr. Barofsky."

Investigatory Timeline

1. In 2021, in response to concerns raised by the Simon Wiesenthal Center (SWC), a Jewish human rights organization, Credit Suisse initiated an internal investigation into its historic servicing of Nazi accounts. SWC has provided evidence and information to support Barofsky's ongoing oversight.
2. In June of that year, the bank hired Barofsky to oversee the investigation, which was being led by forensics firm AlixPartners. But in December 2022, after unsuccessfully pressuring Barofsky to limit his investigation, Credit Suisse terminated his contract.
3. In February 2023, Ranking Member Grassley received credible allegations pertaining to Credit Suisse's wrongful termination of Barofsky. Grassley approached Chairman Whitehouse to share these concerns, and with the full Committee's support, the Ranking Member and Chairman issued the Senate Budget Committee's first subpoena since 1991 in order to acquire a copy of Barofsky's initial investigatory findings.
4. The subpoenaed report confirmed previously undisclosed relationships with Nazi-connected Credit Suisse account holders and initially identified at least 64,000 potentially relevant records meriting further investigation. Following the Budget Committee's intervention, Credit Suisse reinstated Barofsky to complete his oversight to ensure a full investigation.

Ongoing Investigation

Summary

1. Barofsky is working to ensure "all relevant parts" of Credit Suisse's archives are incorporated into the ongoing investigation. This includes records Credit Suisse absorbed through the acquisition of various predecessor banks, as well as records the bank failed to systematically review in the past.
2. In total, the relevant records meriting review span over 300,000 meters of archival shelving, in addition to a significant number of digital records. Records are found in various forms of storage and file types; many are paper documents originating from the 1930s and 1940s.
3. Barofsky has received the resources he deems necessary for his oversight, including forensic accountants, historians and other subject matter experts. Notably, Barofsky's team includes Ira N. Forman, the former U.S. Special Envoy for Monitoring and Combating Anti-Semitism. Forman provides advice on the insights and perspectives of the Jewish community. His work, alongside Barofsky's, had also been blocked amid his prior termination in 2022.
4. In addition to their archival studies, investigators are conducting interviews with former Credit Suisse staff. Research is ongoing in Zurich, Switzerland, as well as additional locations throughout Europe, South America and the United States.

Photo of a portion of the archives in Zurich, courtesy of Senator Grassley's office. Barofsky and his team have full access to Credit Suisse's private archives.

The Inf Department and American Black List

1. Among the records reviewed thus far, Barofsky has identified a vast quantity of relevant files belonging to the "Inf Department," a research department in which Credit Suisse housed client identification information. This is the first time the Inf Department as a whole has ever been systematically reviewed.
2. The Inf Department files show a "high relevance rate" of Nazi connections. Within the Inf Department, Barofsky and his team have identified 3,600 physical documents, filling 400 meters of archival cabinets, along with 40,000 microfilms, which will be subject to further review.
3. Some client documents in the Inf Department are stamped with "Amerikanische schwarze Liste," or "American Black List." Allied Forces used this stamp to single out entities that supported the Axis powers.

Example of an American Black List stamp found on a document in Credit Suisse's Inf Department, provided by Barofsky.

Commission Cover-Up

1. According to Barofsky, Credit Suisse "did not always share information that it knew" with prior investigations, such as the Bergier and Volcker Commissions, which were tasked with scrutinizing Swiss banks' roles before, during and after World War II, and identifying dormant accounts following World War II.
2. In one example, Barofsky and his team located a registry card belonging to a Nazi intermediary in Credit Suisse's archives. Despite this individual's assistance to Nazi efforts, information on the intermediary was left out of the report Credit Suisse provided to the Volcker Commission. The bank's internal comments note Credit Suisse's report to the Commission was "rather sanitized," and bank staff at the time wrote it was "[b]est to leave [the report] as is."
3. Staff interviews further allege Credit Suisse "share[d] only information that was specifically requested," rather than readily responding to the Commissions' mandate or supporting its staff.

Ratlines, Nazi Intermediaries and Additional Account Holders

1. Information on Nazi intermediaries is notoriously difficult to trace given the conspirators' extensive efforts to disguise their assistance of Nazis' financial transactions, looting of Jewish assets, gold smuggling and war purchases. While prior commissions failed to fully investigate Nazi intermediaries, Barofsky and his team have thus far identified Credit Suisse accounts for several hundred alleged Nazi intermediaries that require further investigation.
2. Barofsky has also uncovered a "significant connection" between Credit Suisse and many individuals who helped Nazis flee Europe in the wake of World War II via "ratlines" - monetary and logistic pathways by which Nazis escaped justice. Barofsky's investigative team is working with scholars specializing in ratline research and have already identified more than three dozen new individuals connected to the ratlines.
3. Examples of individuals with Credit Suisse accounts whom the investigation has found to be connected to Nazi atrocities and Jewish exploitation include: a German manufacturer who relied extensively on concentration camp slave laborers opened and held an account at Credit Suisse, and, a Nazi who oversaw a bank used to "aryanize" Jewish assets held accounts with Credit Suisse, several of which were opened after Nazis required Jewish citizens to deposit their assets at that bank. The bank itself also held accounts at Credit Suisse.

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