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Floor Speech
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Mr. GRASSLEY. Mr. President, earlier this year, Chairman Whitehouse and I began bipartisan work to investigate Credit Suisse's historical servicing of Nazi-linked accounts. Today, I would like to discuss this important bipartisan work and thank Senator Whitehouse and his staff for their assistance on this very important topic.
In March of 2020, Simon Wiesenthal Center notified Credit Suisse that it found previously undisclosed information relating to the bank's Nazi ties. The bank, to its credit, initially took steps in the right direction and agreed to investigate. It even retained a research firm to conduct a forensic review. It even retained former TARP Inspector General Neil Barofsky to oversee that review as an independent ombudsman, and they also had U.S. Envoy Ira Forman as an independent adviser.
But after Credit Suisse hired a new general counsel--so a new person stepped in--the bank paused its review, limited experts' access to records, and terminated Barofsky and Forman; very odd acts to take compared to the positive start of this investigation.
Anyway, the bank cited performance issues for the termination. Well, the then-general counsel's predecessor never expressed those concerns, and the bank's research firm described Barofsky as professional. And I happen to know some of Barofsky's work, and he is, in fact, a professional.
Barofsky drafted a report about what he observed at the bank and found, as he was contractually obligated to do. So Chairman Whitehouse and I issued the Budget Committee's first subpoena since 1991 to obtain that report.
Credit Suisse had prevented Barofsky from providing us a fully unredacted report. Ultimately, we not only obtained that report fully unredacted but also the bank's own report.
So then what did Chairman Whitehouse and I find? Credit Suisse did not review and investigate all relevant records. For example, Credit Suisse did not use a full dataset from its predecessor's bank.
It inconsistently collected and reviewed information such as account balances. Credit Suisse failed to review allegations that Nazi heirs had sought access to bank accounts.
When the review pointed to evidence of wrongdoing beyond Argentina, Credit Suisse stated the information was ``out of scope'' and then didn't do any investigation.
Now, even after those limitations, the reports revealed new information, including nearly 100--and let me emphasize ``100''-- previously undisclosed Nazi-linked accounts. Some accounts remained open as recently as the year 2020.
And when we finally got an unredacted version, it showed evidence that 64,000--let me emphasize ``64,000''--sets of potentially relevant records related to Nazi-linked accounts were not part of the investigation.
Credit Suisse claims that they are irrelevant without giving us a sufficient explanation. Credit Suisse also blocked its independent oversight that included Barofsky, Forman, and also a historian hired to assist the investigation from accessing critical evidence.
The reports also raised brandnew questions about the bank's potential support for Nazis fleeing justice following World War II via the infamous ratlines.
Until pressured by Chairman Whitehouse and me, Credit Suisse had refused to fully investigate allegations of its potential role aiding Nazis' escape from justice via the ratlines.
So, today, despite multiple requests, Credit Suisse still refuses to share exact details on the scope of its ongoing ratlines review. This is unacceptable.
And do you know what else is unacceptable? Credit Suisse's actions after we made those reports public are unacceptable. The bank issued a press release on April 19 of this year filled with one excuse after another. The bank's press release essentially ignored its own report. It also incorrectly claimed full cooperation with the committee's oversight, despite the bank objecting to the committee receiving a fully unredacted copy of the Barofsky report until July 31 and despite failing to provide a full report of the ratlines review.
Then, the bank petitioned a Federal court against the Simon Wiesenthal Center. The bank says that litigation from the 1990s provided full disclosure in all matters related to the Holocaust and World War II.
Now, this seems to me that the bank is trying to silence a prominent--very prominent--Jewish human rights organization. Ironically, as the bank continues down this road, it appears to be creating a modern-day ``David versus Goliath'' story.
Notably, it was the bank that initiated the new review that I have discussed with my fellow Senators here today. Credit Suisse acknowledged the potential for the investigation to result in settlements or restitution. The fact that the bank has since agreed to fully review its reported role with the ratlines also shows that we are dealing with a whole new set of facts. But now let's take a step back.
I have listed numbers, and I have listed figures. Let's not forget that we are talking here about, not facts and figures, we are talking about real people, victims of atrocities perpetrated through the Holocaust. Credit Suisse--and now UBS as the new owner--must embrace the sunlight, which, of course, we all know in government is the best disinfectant.
So here is my advice: Accept the historical facts and own those facts. They ought to play a positive role in exposing the historical evils of the Nazis once and for all.
Credit Suisse--and now UBS--has a responsibility to expose all information related to its historic servicing of Nazis during and also following World War II. They owe it to the Holocaust victims, survivors, and to the world community.
This information is very critical to a more complete record, and it will also allow us to learn from history, to create a more peaceful, just future. We must learn from history to prevent the mistakes of the past, from those mistakes being repeated again.
Simon Wiesenthal once said:
Justice for crimes against humanity must have no limitations.
So I encourage Credit Suisse and UBS to bring this matter to a positive conclusion worthy of history's eyes.
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