The imminent release of the Parliamentary Commission of Inquiry (PCI) report is a significant moment in understanding the collapse of Credit Suisse.
The commission was established to investigate the failures of various authorities that contributed to the bank's downfall. The focus of the investigation is on the interactions between the Federal Department of Finance (FDF), the Swiss National Bank (SNB), and the Financial Market Supervisory Authority (FINMA). The commission aims to determine whether these authorities acted promptly or allowed the situation to worsen unchecked, raising concerns about oversight and regulatory effectiveness.
The commission is chaired by Isabelle Chassot and comprises 14 members from both the National Council and the Council of States. The proceedings of the commission are confidential, with only the chair authorized to communicate findings publicly. The identities of those interviewed remain undisclosed, although it is expected that high-profile figures such as Ueli Maurer, Karin Keller-Sutter, and Thomas Jordan were among those questioned.
The investigation covers the period from 2015 to the bank's collapse in 2023, with a particular emphasis on the summer of 2022 when the bank's precarious state became increasingly evident. The commission's findings are expected to scrutinize the role of FINMA and assess Ueli Maurer's political legacy in relation to Credit Suisse's challenges. The investigation may also explore the limitations imposed on FINMA by Parliament, potentially leading to significant reforms in the regulatory framework governing Swiss banking.
As the release of the CEP report approaches, there is speculation about its recommendations for institutional reforms. It is likely that the commission will propose enhancements to the powers of FINMA and a reevaluation of the "too-big-to-fail" regulations to prevent similar failures in the future. The outcomes of the inquiry could also impact the capital requirements for UBS, the bank that acquired Credit Suisse in an emergency takeover.
The fallout from the investigation may result in leadership changes within the regulatory bodies, with Marlène Amstad, the president of FINMA, being the most likely casualty. Former Credit Suisse executives may not face immediate repercussions as the commission's focus is on systemic failures rather than individual accountability. The implications of the CEP report will extend beyond Credit Suisse and have the potential to reshape the landscape of Swiss banking.