The U.S. Department of Justice has expanded its criminal investigation into foreign banks that sell offshore private banking services. The probe now includes HSBC, according to Reuters News Service. On December 2, 2008 the New York Times verified that HSBC in involved, citing people briefed on the matter. While it is simply a probe by the DOJ, it is a foot in the door. The investigation into HSBC, which also includes Credit Suisse, began around September and is focusing on whether the two banks helped wealthy American clients hide up to $30 billion in offshore accounts that went undeclared to the U.S. Internal Revenue Service, the people briefed on the matter told the newspaper.

HSBC, Credit Suisse and the U.S. Justice Department could not be immediately reached for comment.

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