The impending release of the PUK report on the collapse of Credit Suisse has drawn attention to the roles played by various authorities and key figures in the Swiss financial system. The report aims to analyze the failures that led to the downfall of the bank and raise questions about oversight and accountability.
The PUK was established by the Federal Council to investigate the interactions between the Federal Department of Finance, the Swiss National Bank, and the Financial Market Supervisory Authority. It seeks to determine who was responsible for the bank's demise and whether the authorities acted in a timely manner to prevent it.
The report will examine the timeline of events leading up to the bank's collapse, particularly focusing on the period from summer 2022. The PUK is chaired by Isabelle Chassot and comprises 14 members from various parliamentary groups. The commission has conducted 62 oral and written hearings, with the identities of those interviewed remaining confidential.
Former Finance Minister Ueli Maurer, his successor Karin Keller-Sutter, former National Bank President Thomas Jordan, and FINMA head Marlène Amstad are believed to have been extensively questioned. The report is expected to highlight the shortcomings of FINMA and whether it failed to intervene effectively as Credit Suisse faced challenges. It will also examine Maurer's political legacy and the extent to which he informed the Federal Council about the bank's state.
The inquiry aims to clarify why the Swiss authorities appeared to stand by as the situation deteriorated, raising concerns about the effectiveness of cooperation among the FDF, FINMA, and SNB. The PUK report is anticipated to recommend improvements to the regulatory framework governing Swiss banks, particularly regarding the powers of FINMA. It may suggest that the supervisory authority requires enhanced authority to act decisively in times of crisis.
The report could lead to a reevaluation of "too-big-to-fail" regulations and discussions on how to ensure that major financial institutions are better capitalized. The political ramifications of the report could be significant, especially for those currently in office or recently departed. While Amstad's position as head of FINMA may be at risk, Maurer and Jordan have already left their roles. Keller-Sutter, who played a crucial part in the emergency takeover of Credit Suisse, may face scrutiny regarding her actions during the crisis.
The PUK raises the question of whether the commission itself will engage in self-criticism. Parliament has historically resisted granting more power to FINMA, potentially undermining the supervisory authority's ability to enforce regulations effectively. The findings of the PUK are expected to lay the groundwork for a more robust regulatory environment in Switzerland, addressing the systemic issues that contributed to the downfall of Credit Suisse. The report will likely emphasize the need for a more proactive approach to financial oversight to prevent similar failures in the future.