Gov. Roy Cooper Flip-Flops on Corporate Tax Break

Credit Suisse - Tax Break - via Foto Fitti
Credit Suisse – via Foto Fitti

Governor Roy Cooper appears to be breaking one of his campaign promises. Cooper appears to be flip-flopping on his corporate tax break campaign stance.

Two weeks ago, Cooper announced a deal with Credit Suisse that would expand the number of jobs in the Research Triangle Park.

Governor Cooper’s press release states in part that Credit Suisse will create, “1,200 new jobs in North Carolina over the next several years,” and that the company,  “plans to invest $70.5 million at its current campus in RTP to accommodate this expansion.”

“Credit Suisse has enjoyed a strong presence in North Carolina for more than a decade, and they’ve flourished here,” said Governor Cooper. “We’re encouraged that this commitment to North Carolina will bring high-paying jobs and spur economic development across our state.”

But that deal comes with a hefty subsidy.  Cooper’s press release sticks this important piece of information down in the eighth paragraph:

Credit Suisse’s expansion in Wake County will be facilitated, in part, by a Job Development Investment Grant (JDIG) approved by the state’s Economic Investment Committee earlier today. Under the terms of the JDIG, the company is eligible to receive up to $40.2 million in total reimbursements.

When campaigning, Cooper has said on his website that he opposed, “Corporate giveaways and tax cuts for the wealthiest come at a high cost for middle-class families.”

Cooper Promise Checker - Promise BrokenYet now Credit Suisse will be receiving a $40.2 million dollar tax break per Governor Cooper.

House leaders responded to Cooper’s corporate hand-out to Credit Suisse, who made economic threats to North Carolina over House Bill 2 (HB2), by saying they, “welcomed his change of attitude” on tax cuts.

Credit Suisse’s long, checkered history

A $40.2 million dollar tax break is a drop in the bucket compared with the fines Credit Suisse has racked up over the years.

Here is a sampling of the billions the company has been fined for their mismanagement and shady business practices.

12-15-09 NY Times
“Credit Suisse is expected to pay a fine of $536 million to settle accusations by the
United States government and New York State authorities that it violated sanctions
by helping Iran and other countries secretly funnel hundreds of millions of dollars
through American banks, people involved in the negotiations said Tuesday.”

05-14-19 Forbes
Credit Suisse fined $2.6 billion by IRS; plead guilty to conspiring to help Americans evade taxes.

10-05-16 SEC
Credit Suisse Paying $90 Million Penalty for Misrepresenting Performance Metric

10-21-16 Business Times
Credit Suisse to pay 109.5m Euros in Italy tax probe; Allegedly to help clients evade taxes

12-05-16 FINRA
FINRA Fines Credit Suisse Securities (USA) LLC $16.5 Million for Significant Deficiencies in its Anti-Money Laundering Program

12-13-16 Institutional Investor Securities Blog
$11 billion Credit Suisse investor fraud case is given green light to proceed in NY.

12-23-16 Bloomberg
Credit Suisse agreed to a $5.3 billion deal and will recognize a $2 billion hit to earnings to resolve U.S. investigations into sales of the toxic debt that fueled the financial crisis.
More at Reuters via CNBC.

03-15-17 LeapRate
“Australia financial regulator ASIC has announced that Credit Suisse Equities (Australia) Limited, an Australian unit of global banking firm Credit Suisse Group AG (ADR) (NYSE:CS) has paid a penalty of AUD $170,000 to comply with an infringement notice from ASIC’s Markets Disciplinary Panel (MDP).”

03-31-17 American Banker
Credit Suisse raided, client assets seized in tax probe

04-16-17 Law360
“Credit Suisse Securities (USA) LLC and one of its former investment advisers agreed to pay a total of nearly $8 million to end the U.S. Securities and Exchange Commission’s claims they improperly invested clients in more expensive mutual funds to reap higher fees, the SEC announced Tuesday.”
More at Reuters.

A full and very detailed accounting of Credit Suisse’s checkered past can be found at the Corporate Research Project.

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