Grassley Opens Judiciary Hearing on Swiss Banks’ Hidden Nazi Ties

Prepared Opening Statement by Senator Chuck Grassley of Iowa
Chairman, Senate Judiciary Committee
The Truth Revealed: Hidden Facts Regarding Nazis and Swiss Banks
Tuesday, February 3, 2025

Today's hearing will discuss new facts and evidence regarding Nazis collaborating with Swiss banks.

Given the important and historical nature of this matter, the committee has rightfully come together for a bipartisan consensus hearing.

I thank Ranking Member Durbin for his support and collaboration.

This hearing's part of my and Senator Whitehouse's ongoing investigation into Credit Suisse's historic servicing of Nazi-linked accounts.

We launched this investigation last Congress when we led the Senate Budget Committee. This hearing serves as an interim investigative update.

I appreciate Senator Whitehouse's leadership on this matter.

It's said that history repeats itself.

Unfortunately, in the case of this investigation, history's in a time loop.

We're living through a modern-day David versus Goliath story.

And we all know how that turned out.

A few days ago, UBS took action which would result in silencing the Simon Wiesenthal Center.

The Center's representative serves as a witness today at the very same table with the bank that's tried to silence him.

Before we get to that, let's take stock of where we've come from.

In March of 2020, the Simon Wiesenthal Center notified Credit Suisse that it found information relating to the bank's Nazi ties.

The bank initially agreed to investigate.

It hired a research firm to conduct a forensic review. It retained former Troubled Asset Relief Program (TARP) Inspector General Neil Barofsky to oversee that review.

But, after the investigation uncovered damaging information, the bank paused its review, limited access to records and terminated Barofsky.

The bank cited so-called "performance issues" for the termination. That was false.

Indeed, if anything, Neil Barofsky performed all too well.

In true dedicated fashion, Barofsky drafted a report about what he found.

So, last Congress, then-Chairman Whitehouse and I issued the Budget Committee's first subpoena since 1991 to obtain and release that report to the public.

We also obtained the forensic auditor's report.

The reports uncovered historical information.

The report said that Credit Suisse didn't review and investigate all relevant records regarding its Nazi past and applied excessive scope restrictions to its review.

Even with those limitations, the investigation revealed new information, including nearly 100 Nazi-linked accounts, many previously undisclosed.

Some accounts remained open until the 1990s; one remained open as recently as 2020.

Then, UBS acquired Credit Suisse.

With this acquisition came new leadership, and the investigation was brought back to life.

At that point in time, credit belonged to UBS for working to right some of Credit Suisse's wrongs.

Inspector General Barofsky was rehired and provided significant resources to run the investigation.

The bank has spent millions of dollars supporting the investigation.

Those resources have funded archival and forensic research by historians and experts who've searched for facts around the world.

But, just like the bank it acquired, UBS snatched defeat from the jaws of victory.

The unfettered access and spoken commitment to leave no stone unturned, which had resulted in great progress and cooperation, now faces challenges.

You might ask, when did this change in conduct begin?

Right after UBS was made aware that this committee might hold a public hearing.

All of a sudden, UBS began withholding records from the investigation.

Then, Inspector General Barofsky learned that Gibson Dunn - the same law firm that's helping UBS take legal action against the Simon Wiesenthal Center in New York - is reviewing and filtering what information he could access.

So, UBS, through Gibson Dunn, has taken legal action against a Jewish human rights organization named after a famed Nazi-hunter.

And that same law firm is now a filter by which Inspector General Barofsky must rely upon their judgment as to what records he can access.

And, unfortunately, legal action came to a head just last week under Judge Korman in New York, where UBS essentially tried to block the Simon Wiesenthal Center from fully speaking on all Holocaust issues right before this hearing.

And coupled with that, UBS tried to limit Barofsky's testimony here today.

These efforts, if successful, would've frustrated this committee's public hearing.

UBS's conduct is absurd and a historic shame that'll outlive today's hearing.

Now, before UBS's recent obstructive efforts, the investigation yielded new information.

Based on Barofsky's testimony, Credit Suisse maintained previously unreported and underreported wartime account relationships with arms of the Nazi government.

Credit Suisse knew it held Nazi accounts and yet withheld some information from the public record, including commissions examining the Holocaust.

Today, we'll also hear about the forced transfer of Jewish assets and how Credit Suisse facilitated the escape networks, known as ratlines, that Nazis used to flee justice following the war.

This investigation has reaffirmed that Swiss banks haven't historically shown neutrality.

In fact, they managed to get away with essentially being part of the Axis powers, while not fully paying for the consequences.

This committee's investigation, as well as Inspector General Barofsky's, is about uncovering the truth once lost to history.

UBS's recent conduct impedes that effort and sabotages its own efforts to show accountability.

To UBS: I strongly urge you to find a way to make peace before it's too late to repair the damage you've done.

To Rabbi Cooper: there may be rough roads ahead, but I trust you'll never lose sight of the fact that God isn't neutral in this fight.

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