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Can someone explain to me how the US has jurisdiction over Credit Suisse? I see how they could have gone after the individual tax fraudsters (American citizens)

Can someone explain to me how the US has jurisdiction over Credit Suisse? I see how they could have gone after the individual tax fraudsters (American citizens), but how can they police foreign banks?

diogenescynic 12y ago
They are foreign banks operating in the United States, so they have to also obey US laws.
- seanmcdirmid 12y ago
  Not only that, but if they want to conduct business with American banks, or just hook into the system, they are subject to certain pressure from the US government. E.g. dealing with Iran or DPRK is a nono.
dragonwriter 12y ago
> Can someone explain to me how the US has jurisdiction over Credit Suisse? Because the US is a sovereign state, which means they have jurisdiction over whatever they choose to have jurisdiction over, subject to constraints forcibly imposed by outside parties. > I see how they could have gone after the individual tax fraudsters (American citizens), but how can they police foreign banks? The US government (even ignoring extraordinary action it could take outside of the US or with the cooperation of foreign governments) can effectively impose penalties on any entity that does business in the United States, or holds assets in the United States.
- cube13 12y ago
  Or because they have branches and accounts in the US: https://www.credit-suisse.com/us/en/ https://www.credit-suisse.com/us/en/
- skkbits 12y ago
  > Because the US is a sovereign state, which means they have jurisdiction over whatever they choose to have jurisdiction over, subject to constraints forcibly imposed by outside parties. I am afraid this is not correct. A sovereign state has jurisdiction over physically defined borders ( boundaries) of the state. Thus, US can not claim its jurisdiction over India because US is sovereign state. In case o Credit Suisse , since they are doing business in US , US does have jurisdiction on CS US entity. I believe though, US has no jurisdiction of other parts of CS that don't exist in US.
- aestra 12y ago
  >impose penalties on any entity that does business in the United States, or holds assets in the United States. Or even does business with US citizens.
whoismua 12y ago
What others said (operate in US = must obey US laws0 AND the fact that they can freeze out any bank out of the US financial industry.
charonn0 12y ago
IANAL but I think the alternative for Credite Suisse is to stop doing business with the US and US-based companies.

diogenescynic 12y ago

They are foreign banks operating in the United States, so they have to also obey US laws.

seanmcdirmid 12y ago
Not only that, but if they want to conduct business with American banks, or just hook into the system, they are subject to certain pressure from the US government. E.g. dealing with Iran or DPRK is a nono.

dragonwriter 12y ago

> Can someone explain to me how the US has jurisdiction over Credit Suisse? Because the US is a sovereign state, which means they have jurisdiction over whatever they choose to have jurisdiction over, subject to constraints forcibly imposed by outside parties. > I see how they could have gone after the individual tax fraudsters (American citizens), but how can they police foreign banks? The US government (even ignoring extraordinary action it could take outside of the US or with the cooperation of foreign governments) can effectively impose penalties on any entity that does business in the United States, or holds assets in the United States.

cube13 12y ago
Or because they have branches and accounts in the US: https://www.credit-suisse.com/us/en/ https://www.credit-suisse.com/us/en/
skkbits 12y ago
> Because the US is a sovereign state, which means they have jurisdiction over whatever they choose to have jurisdiction over, subject to constraints forcibly imposed by outside parties. I am afraid this is not correct. A sovereign state has jurisdiction over physically defined borders ( boundaries) of the state. Thus, US can not claim its jurisdiction over India because US is sovereign state. In case o Credit Suisse , since they are doing business in US , US does have jurisdiction on CS US entity. I believe though, US has no jurisdiction of other parts of CS that don't exist in US.
aestra 12y ago
>impose penalties on any entity that does business in the United States, or holds assets in the United States. Or even does business with US citizens.

whoismua 12y ago

What others said (operate in US = must obey US laws0 AND the fact that they can freeze out any bank out of the US financial industry.

charonn0 12y ago

IANAL but I think the alternative for Credite Suisse is to stop doing business with the US and US-based companies.