We have been following the bank and the US interest in stopping the outflow of taxable income to protected offshore countries.  Switzerland and Credit Suisse is in the cross hairs of the US Senate, Department of Justice, Internal Revenue and The New York State Department of Financial Services.  Interestingly, although the decline in profits is attributed to Credit Suisse’s investment-banking unit which fell 13% and pretax income slide 36%. Credit Suisse has trimmed its investment-banking operations recently, pulling back from its interest-rate swaps and options businesses. But the bank maintains a relatively large fixed-income trading operation, a business that singed results at J.P.Morgan Chase and Citigroup during the quarter.  Credit Suisse said revenue from fixed-income sales and trading fell 21% from the same period a year earlier.

The drop in investment-banking revenue was coupled with an unexpected bump in the bank’s risk-weighted assets that crimped its CET 1 capital ratio, a key international measure of bank stability.

However high income individual’s deposits are up by 8%.  We do not know how many American citizens this includes, and why they continue to bank in Switzerland instead of at home.   Credit Suisse Earnings Report