Karin Keller-Sutter addresses Credit Suisse crisis and handover issues with Maurer

The recent report from the parliamentary commission of inquiry (PUK) has shed light on the Credit Suisse crisis, revealing a series of self-inflicted wounds that led to the bank's downfall.

Role of Karin Keller-Sutter's Predecessor

The role of Karin Keller-Sutter's predecessor, Ueli Maurer, has been criticized for providing inadequate and overly optimistic information to the Federal Council regarding the bank's stability. This contributed to a loss of confidence in Credit Suisse.

Keller-Sutter acknowledged that the transition of responsibilities from Maurer to herself was not ideal. She emphasized that the Federal Council is not responsible for supervising banks and that the crisis was a result of internal mismanagement.

Issues Faced by Credit Suisse

The report suggests that Credit Suisse had been facing issues for years, indicating that the crisis may have occurred regardless of the handover process. Keller-Sutter's comments reflect an understanding of the complexities of financial governance and the challenges faced by institutions in maintaining public trust.

Lack of Communication

One of the key points raised in the PUK report is the lack of communication between Maurer and Keller-Sutter. Keller-Sutter stated that she never met with Maurer after taking over the department, raising questions about the effectiveness of the transition.

Maurer had consistently assured that the situation at Credit Suisse was stable, which Keller-Sutter found to be misleading. She defended her own communication practices within the Federal Council, stating that she had briefed her colleagues on existing scenarios during her third meeting after assuming her role.

Implications for Financial Oversight

The PUK report's conclusions have significant implications for financial oversight in Switzerland. Improved communication and transparency within government departments, especially regarding financial institutions, are needed.

Keller-Sutter's remarks indicate a recognition of these challenges as she works to restore confidence in the financial system. The investigation will likely lead to a reevaluation of the roles and responsibilities of financial oversight bodies to prevent similar crises in the future.

Future of Financial Policy and Regulation

The lessons learned from the Credit Suisse debacle may influence financial regulation in Switzerland and beyond. The ongoing discourse surrounding the crisis will shape the future of financial policy and regulation in the country.

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