The recent findings from the Parliamentary Commission of Inquiry (CEP) have revealed the years of mismanagement within Credit Suisse that led to its catastrophic collapse in March 2023.

Failings of Federal Authorities

The inquiry highlighted that while federal authorities were not directly responsible, they exhibited significant failings that worsened the crisis.

Negligence of Credit Suisse Leadership

The bank's downfall was triggered by a singular event, but underlying issues had been festering for years due to negligence from the bank's Board of Directors and management.

The CEP's report emphasized that the leadership consistently ignored warnings from Finma, the Swiss financial market supervisory authority, and failed to implement substantial changes.

Regulatory Leniency and Hidden Vulnerabilities

This allowed the bank's vulnerabilities to remain hidden.

The report revealed that regulatory leniency allowed the bank to hide its financial weaknesses, leading to a false sense of security.

Coordination Issues and Slow Response

The crisis also exposed coordination issues among various authorities, hindering effective response.

However, the authorities were commended for their efforts during the critical phase in March 2023, which prevented a global financial crisis.

Call for Robust Governance and Regulatory Reforms

The inquiry's findings highlight the need for robust governance and regulatory frameworks in the financial sector and call for significant reforms to prevent similar crises in the future.