US Senators Accuse UBS of Blocking Probe into Credit Suisse's Nazi Ties

Senate Judiciary Committee Chairman Chuck Grassley on Tuesday (local time) said lawmakers were examining "new facts and evidence regarding Nazis collaboration with uh, Swiss banks," describing the inquiry as a bipartisan effort to uncover the historical truth that had been "once lost to history."

Grassley said the investigation began after the Simon Wiesenthal Centre notified Credit Suisse in 2020 that it had identified information related to the bank's Nazi-era ties.

He said Credit Suisse initially agreed to investigate and hired former Troubled Asset Relief Program inspector general Neil Barofsky to oversee the review.

"But after the investigation uncovered damaging information, the bank paused its review, limited access to records and terminated Barofsky," Grassley said, calling claims of performance issues "entirely false."

Grassley said the Senate Budget Committee later issued its first subpoena since 1991 to obtain Barofsky's draft report and a forensic auditor's report, which found that Credit Suisse "didn't review and investigate all relevant records regarding its Nazi past and applied excessive scope restrictions to its review." Even so, the probe identified nearly 100 Nazi-linked accounts, with some remaining open until the 1990s and one as recently as 2020.

After UBS acquired Credit Suisse, Grassley said Barofsky was rehired and given resources to revive the investigation. He credited UBS for initially cooperating, but alleged that the bank began withholding records after it learned the Senate might hold a public hearing.

He also criticised UBS for pursuing court action in New York that he said could limit the Wiesenthal Centre's ability to speak about Holocaust-related issues and restrict Barofsky's testimony.

"UBS conduct is absurd and a historic shame that will outlive today's hearing," Grassley said.

Ranking Member Dick Durbin said the hearing came as the living memory of the Holocaust fades, making it vital that events "are not forgotten, are not revised and are not rewritten." He noted that more than six million Jews were killed during the Holocaust and said lawmakers still had a responsibility to reckon with the past.

Senator Sheldon Whitehouse said the bipartisan investigation had brought to light "never-before-seen information" about Credit Suisse's role in servicing Nazi clients and accounts central to the Nazi war effort.

He cited findings that included previously undisclosed accounts held by senior Nazi officials and entities involved in escape networks known as "Ratlines."

Testifying, Rabbi Abraham Cooper of the Simon Wiesenthal Centre said Congress had "an unprecedented opportunity to look under the hood of the banking machinery that facilitated genocide." He warned that "silencing researchers, intimidating human rights organisations or restricting historical truth, undermines integrity and weakens confidence."

UBS Americas President Rob Karofsky and UBS Group General Counsel Barbara Levi said the bank had undertaken "unprecedented voluntary work" to uncover historical facts, providing 16.5 million documents, millions of pages of data, and access to archives in multiple countries. Levi said a small set of documents remained disputed because they relate to the 1999 Holocaust litigation settlement and were subject to privilege concerns.

Barofsky told lawmakers that without access to those documents, he could not complete his mandate. "I don't know what's in those documents," he said, adding that even a small number could be decisive in determining whether specific Nazi-linked individuals held accounts.

In his testimony, Barofsky detailed newly uncovered ties between Credit Suisse and Nazi institutions, including accounts linked to the German Foreign Office and SS-related financial networks.

He also described evidence showing Credit Suisse's role as banker and landlord to an Argentine smuggling operation that helped Nazis flee Europe after the war.

Barofsky said his final report is expected by the end of the year and will include further findings. He warned that current disputes could undermine the investigation if not resolved.

Lawmakers repeatedly urged UBS to provide full access to records and allow the investigation to proceed without obstruction. "The Senate will be watching," Grassley said, "and the truth will come out."

The hearing also revisited the 1999 settlement in which Swiss banks agreed to pay $1.25 billion to Holocaust victims and heirs. Witnesses said that while the settlement resolved legal claims, it did not preclude continued historical investigation.

Senators said the goal of the current probe is to establish a complete and transparent historical record on Nazi-linked banking activity, arguing that accountability and truth remain essential decades after the Holocaust.

- IANS