It needs an extension to continue. It should have applied by now – the last one took 16 months to process.
As a criminal bank, it cannot manage DOL pension funds without a waiver.
The DOL imposed special conditions on Credit Suisse for its first waiver, thanks to the public submissions and hearing:
- The DOL acknowledged the longstanding and pervasive culture of wrongdoing within the Credit Suisse organization, including knowledge of corporate wrongdoing by senior executives.
- The DOL also acknowledged that the criminal behavior of Credit Suisse AG might mean that assurances of legal compliance by the Credit Suisse Affiliated QPAMs would lack credibility.
- In brief, the DOL insisted upon:
The most egregious of the CS asset managers (QPAM’s) is Credit Suisse Securities (USA) LLC (CSS), f/k/a Credit Suisse First Boston.
CSS did not participate in the public hearing but instead engaged the now-discredited Podesta Group in private lobbying of the DOL & the Senate during that period – according to its LD-2 Disclosure Form.
That lobbying raises several issues:
- Why did CSS exclusively use secret arguments via Podesta Group concurrently with a public hearing specifically set up so that such discussions would be public?
- That public hearing discussed the fundamental question of why CSS with its shocking track record should be permitted to manage pensions when regulations forbid such entities from doing so.
- CSS made no public defense of its position but was still granted a waiver.
- Three years ago, I submitted a FOIA request to the DOL for details of this lobbying. So far NOTHING has been found. After 2 appeals against closing this search, they are still looking.
- In granting the CSS waiver, the DOL emphasized that fiduciaries must do their own diligence in choosing whether to hire and/or retain CSS as a QPAM service provider, after taking into account the relevant criminal and civil matters.
- The DOL decision stated, quote: “However, the fiduciary of a plan or IRA should consider the involvement of the Credit Suisse QPAMs in a private controversy (as well as a criminal investigation) in its determination as to whether to hire and/or retain a Credit Suisse QPAM as a service provider.”
- The Supreme Court made fiduciaries liable for neglecting this duty (in Tibble et al. vs. Edison International on May 18, 2015): “Plan fiduciaries’ duty of prudence includes a continuing duty to monitor investments”.
- By “coincidence”, Senator Ron Johnson sent his infamous letter “harassing” the DOL at the same time as the CSS lobbying. That letter reads as if it had been instigated or written by CSS.
- That letter is in direct contradiction of Sen. Johnson’s Iran policy. Senator Johnson is a vocal public critic of Iran as a “state sponsor of terrorism” but also a recipient of political donations from CSS. Credit Suisse and its QPAM’s (including CSS) helped finance the nuclear program of Iran in a massive billion-dollar criminal money laundering operation.
- CSS was recently found to have committed fraud in its real estate dealings and ordered to pay around $245 million.
- CSS is appealing the payment order but not the finding of fraud.
- CSS court documents say that its extensive disclaimers permitted such fraud.
- CSS court documents are of an intimidating nature, threatening that businesses require courts to uphold contractual disclaimers (including the “right to do fraud”) if businesses are to continue operating in that jurisdiction (here “business friendly” Texas).
- Simple summary: long-time fraudster CSS demands the right/entitlement to do fraud.
- Why would the DOL even think that CSS would uphold the high standard of integrity required of QPAM’s?
There will be a comment period when the waiver extension
proposal for Credit Suisse is published. You can request another public hearing.
Contact me if interested in participating. The bank’s deceptions in getting its first 5-year waiver need to be exposed.