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Struggling for weeks with the bankruptcies of three US banks (Silicon Valley Bank, Silvergate and Signature Bank), the banking sector remains in troubled waters. A joint investigation by France and Germany could lead to tax evasion worth nearly $150 billion.
A 150 billion euro fraud?
Yesterday, Tuesday March 28, the German and French authorities jointly conducted several searches of five banks. These specifically targeted 4 French banks (BNP Paribas, Exane, Natixis, Société Générale) and the HSBC bank. As several newspapers have noted, these searches echo the gigantic tax fraud case, better known under the code name of “CumCum”. A scam that would have deprived 9 countries of a colossal sum estimated at 150 billion euros.
However, the scandal had been revealed in 2018 by several major media such as The world. Initially estimated at 55 billion euros, the investigation made it possible to reassess the total amount of damage. But then, what is reproached to these 5 banks?
The idea behind this fraud was to allow customers of the banks concerned toescape tax on dividends. Because by entrusting their assets to the banks, the owners of shares hoped to escape taxation. The banks would therefore have played the role of intermediary, notably by creating complex legal structures to cover their tracks. Incidentally, these banks charged their customers a commission on transactions.
For the National Financial Prosecutor’s Office which is leading this case, it is the biggest case in its history. And for good reason, the cumcum affair mobilizes 16 of the 19 magistrates in post at the PNF as well as 150 investigators out of the 250 who make up the organization of the financial judicial investigations department. In addition, six German prosecutors dependent on the Cologne prosecutor’s office are also mobilized on this case.
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A case that does not go unnoticed in the midst of pension reform!
While the use of 49.3 has set fire to the powder in France, this affair finds a very particular echo in a social context under high tension. Especially since the sums described exceeding 100 billion would be welcome at a time when many consider that the government is saving the end of the candle on the pension reform (18 billion euros in gains by 2030). On Twitter, several users have also made the reconciliation between the business and the financing of pensions.
Tax fraud: what is “CumCum”, this practice which costs the state billions? https://t.co/ViGHLhSgrN we are waiting for the trial and the recovery of the windfall that could finance pensions!
— ruined for life (@RuinVie) March 29, 2023
Be that as it may, this new case will not settle the distrust of the banks. In the United States, three banks have already gone bankrupt while the Crédit Suisse has just been taken over by UBS bank. Some observers believe that this banking mistrust could also result in a massive influx of capital to the cryptocurrency. And especially to the king Bitcoin. Remember in passing that Bitcoin was created on the ruins of the 2008 banking crisis, following the bankruptcy of the Lehman Brothers bank.
Source : German wave
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