The US Federal Reserve has barred five Swiss bankers from participating in the banking industry.

The bankers were all criminally indicted in the US in 2011 for their alleged role in the tax evasion conspiracy that Credit Suisse pleaded guilty to last year. The bankers have remained safe from extradition and have yet to voluntarily appear in the US to enter a plea.

Using its prudential authority under the Federal Deposit Insurance Act, the Federal Reserve barred these five individuals from “participating in any manner in the conduct of the affairs of any” US-regulated financial institution—which would include employment outside the US at foreign banks having US branches—until their indictments are disposed of or the Federal Reserve terminates its prohibition.

The five bankers include:

• two former Credit Suisse executives: a former managing director of offshore banking operations and another former senior manager.
• The other 3 were private bankers who allegedly “provided banking and investment advice to US customers who maintained undeclared Swiss bank accounts”.

All five are Swiss nationals although one of them holds dual US/Swiss citizenship.

This step by the Federal Reserve represents an additional method by which the US Government may seek to pressure or punish defendants that remain beyond the practical reach of US criminal authorities.

Copies of the notice and press release are available.