The Federal Council has responded to the recommendations made by the Parliamentary Investigation Commission (PUK) regarding the Credit Suisse crisis. While the Council acknowledges some of the insights provided by the PUK, it disagrees with certain key recommendations, particularly those related to the development of too-big-to-fail (TBTF) regulations. The Council believes that existing TBTF rules have already strengthened systemically important banks significantly, contrary to the PUK's assertion that further enhancement is necessary.
The Federal Council recognizes the need to adapt TBTF rules to align with the size and significance of UBS, the only globally systemically important bank in Switzerland. The Council proposes adopting a motion to amend these rules, emphasizing the importance of proportional and effective strengthening of the TBTF framework. This aligns with the PUK's stance, indicating a shared understanding of the significance of robust regulatory measures in the banking sector.
The Federal Council has also addressed the cooperation among key financial authorities, including the Federal Department of Finance, the Financial Market Authority (FINMA), and the Swiss National Bank (SNB). It clarifies that the steering committee overseeing these interactions is chaired by the head of the Federal Department of Finance, with significant decisions being prepared by this department before being presented to the Federal Council. This structure aims to streamline decision-making processes and enhance the effectiveness of regulatory oversight.
To strengthen FINMA's enforcement capabilities, the Federal Council intends to adopt the PUK's motion granting the authority to impose fines and enforce capital planning on systemically important banks. This reflects a commitment to ensuring that regulatory bodies have the necessary tools to maintain financial stability and accountability within the banking sector. The Federal Council is also open to examining adjustments in institutional responsibilities and improving collaboration between FINMA and the audit oversight authority, signaling a proactive approach to regulatory reform.
While the Federal Council rejects the PUK's call to restrict the easing of capital and liquidity requirements for systemically important banks, it proposes measures to enhance the National Bank's authority. This includes empowering the National Bank to impose preparatory measures on these banks concerning any extraordinary liquidity assistance (ELA) they may require. This approach aims to ensure that systemically important banks are adequately prepared for potential liquidity challenges while maintaining a balance between regulatory flexibility and financial stability.
The Federal Council has implemented recommendations regarding communication and cooperation among the Federal Council, the National Bank, and FINMA. Steps have been taken to rectify deficiencies in IT communication tools, which were previously criticized by the PUK. This commitment to improving communication infrastructure underscores the Federal Council's recognition of the importance of effective information exchange in crisis management.
The Federal Council also addresses concerns regarding the transparency of its decision-making processes. It expresses that overly detailed minutes of meetings could hinder open discussions among government members, emphasizing the need for a conducive environment for candid exchanges of opinions. This perspective highlights the delicate balance between transparency and the necessity for free-flowing dialogue in governance.
Regarding the role of shareholders, the Federal Council acknowledges the validity of the PUK's questions but opts to wait for further experience with the revised company law, which has been in effect since early 2023. This cautious approach suggests a desire to gather more data before making any revisions to existing provisions, reflecting a measured response to evolving corporate governance dynamics.
The Federal Council maintains that it was sufficiently informed during the negotiations of the emergency merger between Credit Suisse and UBS, a point of contention with the PUK. Additionally, the Council acknowledges criticisms regarding the transition of responsibilities from former Finance Minister Ueli Maurer to Karin Keller-Sutter, indicating that a checklist for this handover is currently under revision.
The Federal Council expresses dissatisfaction with the cooperation it received from the PUK during the investigation process. It notes that members of the Federal Council and relevant authorities were given opportunities to review excerpts of the PUK's report for errors, yet many of their feedback points were not incorporated. This has led the Federal Council to assert that the report contains controversial descriptions and examples taken out of context, which could mislead readers and lead to erroneous conclusions.
Furthermore, the Federal Council critiques the reliance on opinions from individual external experts in forming some of the PUK's conclusions. It suggests that a broader support base for these analyses, along with a more critical assessment, would have been beneficial. This critique underscores the complexities involved in the investigation process and the importance of comprehensive analysis in drawing conclusions about significant financial events.