Credit Suisse received some welcome support in its legal battle with the U.S. government over allegations the bank helped U.S. citizens avoid paying U.S. income tax.  But you wouldn't know it from the drubbing that Credit Suisse shares took in the stock market on Tuesday. Credit Suisse learned that it most likely get a helping hand from the Swiss government in its ongoing tussle with the U.S. to ensure the secrecy of its clients.  The bank first learned in July that it was the subject of a criminal investigation. Credit Suisse will probably try to reach a settlement considering the worst case scenario of the proceedings is the forfeiture of its U.S. assets and loss of its U.S. operating license.  The U.S. government demanded information about all U.S. clients holding accounts worth at least $50,000 over the last 10 years from Credit Suisse and other private banks like Julius Baer and Wegelin.  This threat to the Swiss banking system's famed privacy may force the Swiss government to help negotiate a settlement. The Swiss Government Won’t Bend This Time. The Swiss banking system has thrived for decades on the back of secrecy it provides account holders.  While the country’s biggest banks, UBS and Credit Suisse, have a sizable international wealth management operation, many of its high net worth offshore clients maintain accounts in Switzerland to benefit from the privacy that comes with such an account. The Swiss government buckled under pressure from the U.S. in 2009 when it stepped in to settle a similar issue concerning UBS.  UBS ended up paying a $780 million fine and also handed over details of nearly 4,500 secret accounts to the U.S. In the recent past, the Swiss government has been able to protect its banking laws while addressing concerns of countries like Germany and the U.K. by entering into new tax agreements that effectively curb tax evasion opportunities in Switzerland while maintaining client privacy.  [Forbes, 9/6/11]