During a recent event in Vaduz, Aymo Brunetti, a professor at the University of Bern, emphasized the importance of having a structured resolution framework for major banks. He warned that if UBS were to fail, regulators would have limited options without a "Too Big To Fail" (TBTF) regime.
Brunetti compared the current situation to the 2023 crisis that resulted in the forced merger of Credit Suisse and UBS. These remarks by Brunetti highlight the ongoing concerns about the stability of large financial institutions and the potential impact on the banking sector during times of crisis.
This discussion is taking place as financial authorities evaluate the resilience of the banking system and consider the necessary measures to prevent future disruptions.