Hit by US tax case, Credit Suisse posts $779 million loss in second quarter

MarketsAssociated Press

Credit Suisse AG has posted a second-quarter net loss of 700 million Swiss francs ($779 million) after paying the largest penalty ever imposed in a U.S. criminal tax case.

Switzerland's second-biggest bank calls the steep loss, a striking contrast to its 1.045 billion francs ($1.16 billion) profit in the April-June period a year ago, a direct result of resolving the U.S. government's case against the bank for helping wealthy Americans avoid paying taxes through secret offshore accounts.

Continue Reading Below

The Zurich-based bank pleaded guilty in May to aiding U.S. tax evaders and agreed to pay about $2.6 billion to the U.S. government and regulators.

Chief Executive Brady Dougan said Tuesday "we deeply regret the past misconduct that led to this settlement and that we take full responsibility for it."