WASHINGTON DC, May 16 — Credit Suisse Group AG is close to reaching an agreement to plead guilty and pay about US$2.5 billion (RM8.0 billion) to the US Justice Department and regulators to resolve investigations into whether it helped Americans evade taxes, according to three people familiar with the matter.

Under the proposed accord, which could be announced as early as next week, the Zurich-based bank would pay about US$1.7 billion to the Justice Department, at least US$600 million to the New York Department of Financial Services and US$100 million to the Federal Reserve, said two of the people, who asked not to be identified because the matter isn’t public.

“That seems higher than what everybody was anticipating,” said William Sharp, an American tax lawyer who splits his time between Switzerland and the US. “It’s mutually beneficial for both the bank and the US government to put this dispute behind them. It’s been dragging on for many years, and frankly could drag on for several more years.”

The parent company would plead guilty in federal court in Alexandria, Virginia, one of the people said. A guilty plea by Credit Suisse’s parent company would be the first by a major global bank in the US in more than two decades. Switzerland’s second largest bank would admit to a statement of facts still being negotiated, and the firm wouldn’t have to disclose the names of US account holders, the person said.

Holder criticism

US Attorney General Eric Holder is seeking to blunt criticism from lawmakers that the Justice Department considered large banks immune from prosecution after the 2008 financial crisis because of their size and importance to the economy. Holder has been faulted for settlements that let banks escape criminal charges while paying fines, admitting wrongdoing and improving controls.

Calvin Mitchell, a spokesman for Credit Suisse, and Dena Iverson, a Justice Department spokeswoman, declined to comment. The Wall Street Journal reported the possible agreement earlier yesterday. A person familiar with the talks had said last week that Credit Suisse could face penalties of US$1.6 billion or more.

Last month, Credit Suisse set aside 425 million francs (US$477 million) in provisions for the Justice Department probe, in addition to 295 million francs for US tax matters in 2011. It agreed to pay US$196.5 million in February to settle a related investigation by the US Securities and Exchange Commission.

Seven bankers

Seven Credit Suisse bankers were indicted in July 2011 on a charge of conspiring to help US clients hide US$4 billion in assets. The Justice Department told the bank that month that it was a target of prosecutors. The bank is the largest of 14 Swiss firms facing similar criminal investigations.

In February, a Senate subcommittee issued a report and held a hearing that blasted the bank for helping Americans dodge taxes and the Justice Department for not pursing the names aggressively though subpoenas and other enforcement tools.

Chief Executive Officer Brady Dougan testified in February to the Senate panel, saying a small group of Swiss-based bankers appear to have broken US laws.

The Justice Department got names of only 238 Americans with Credit Suisse accounts out of 22,000, according to the Senate report. By contrast, the US got the identities of 4,700 accounts holders in settling a criminal probe and civil lawsuit in 2009 with UBS AG, Switzerland’s largest bank. UBS paid US$780 million and admitted fostering tax evasion. — Bloomberg