Israeli bank: US tax settlement to be higher than thought

Markets Associated Press

Israel's largest bank says the cost of settling a U.S. tax evasion probe could be "significantly higher" than previously anticipated.

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Bank Hapoalim is being investigated by the Justice Department and New York state over allegations that it helped American clients evade taxes.

In a report to the Tel Aviv Stock Exchange Tuesday, the bank said it is in talks with American authorities over the terms of a potential settlement. It said certain "findings" may have "an adverse effect" without elaborating. The bank already has set aside nearly $200 million for a potential settlement.

Israel's Bank Leumi allegedly helped U.S. customers evade U.S. taxes from 2002-2010, and reached a settlement with the Justice Department in 2014 to pay $400 million to the U.S. government.