Credit Suisse not too big to jail

Credit Suisse Group AG is a Switzerland-based multinational financial services holding company headquartered in Zürich that operates the Credit Suisse Bank and other financial services investments.

Credit Suisse pleaded guilty to federal criminal charges on Monday May 19 2014. The banking giant pleaded guilty to an “extensive and wide-ranging conspiracy” to help US clients evade taxes over the course of several decades and agreed to pay about $2.6bn in fines as it became the first large global bank in two decades to admit to criminal charges.

As part of the pact, the US Department of Justice will receive $1.8bn in fines and restitution. New York State’s Department of Financial Services will receive $715m, with $100m going to the Federal Reserve.

Credit Suisse said it would book an after-tax charge of SFr1.6bn ($1.79bn) in the second quarter and

BACKGROUND OF IFRS

Users of financial statements have always demanded transparency in financial reporting and disclosures. 

However, the willingness and need for better disclosure practices have intensified only in recent times. Globalization has helped Nigerian Companies raise funds from offshore capital markets. This has required Nigerian companies, desirous of raising funds, to follow the Generally Accepted Accounting Principles (GAAP) of the investing country. 

The different disclosure requirements for listing purposes have hindered the free flow of capital. This has also made comparison of financial statements across the globe impossible. An International body called International Organization of Securities Commissions (IOSCO), to harmonize diverse disclosure practices followed in different countries initiated a movement. The capital market regulators have now agreed to accept IFRS