{ }
The Greens and Socialist Party in Switzerland are urging authorities to expedite the strengthening of "too big to fail" legislation following concerns about the risks posed by UBS, the newly formed megabank after its takeover of Credit Suisse. They criticize the bank's management for excessive bonuses and call for strict regulations, including a ban on bonuses and improved liquidity requirements. Meanwhile, other parties emphasize the need for effective financial supervision without overregulation, highlighting the importance of UBS in supporting the Swiss economy.
The ICC report on Credit Suisse has been criticized as uncritical and ineffective, with expert Peter V. Kunz labeling its 20 recommendations as useless. He argues that the report absolves authorities of responsibility, particularly highlighting the failures of the Swiss Financial Market Supervisory Authority (FINMA) while acknowledging the Swiss National Bank's professionalism. Overall, Kunz believes the report wasted valuable time without exerting necessary pressure on policymakers.
A PUK has been established in Switzerland for the first time in nearly 30 years, producing a comprehensive 500-page report on the authorities' response to the Credit Suisse crisis. The findings include both praise and criticism, particularly directed at the former management, raising questions about the preparedness of Swiss politicians for future financial crises. For more insights, listen to the podcast series "The end of Credit Suisse" from "News Plus."
Business circles have reacted cautiously to the findings of the Parliamentary Commission of Inquiry into the Credit Suisse collapse, which holds former managers accountable while recommending enhanced regulatory measures. The Swiss Bankers Association and economiesuisse urge against excessive regulation, advocating for improved liquidity support for systemically important banks and cautioning against penalizing UBS, the buyer of Credit Suisse. Finma acknowledges the criticisms but refrains from labeling them as serious shortcomings, while also welcoming proposals for increased powers to enforce regulations effectively.
The Parliamentary Commission of Inquiry concluded that Credit Suisse's downfall in March 2023 stemmed from years of mismanagement by its Board and management, rather than federal authorities' actions. The report criticized delays in decision-making and a lack of coordination among officials, emphasizing the need for reforms in oversight and emergency planning for systemically important banks. Despite the challenges, the federal authorities managed to maintain Credit Suisse's solvency during the crisis, averting a global financial disaster.
Finance Minister Karin Keller-Sutter's crisis management during the Credit Suisse debacle has been praised for preventing an international financial crisis, while her predecessor, Ueli Maurer, faced criticism for inaction. The FDP calls for earlier intervention from the Swiss Financial Market Supervisory Authority (Finma) and emphasizes the need for systematic application of existing supervisory tools rather than indiscriminate capital increases for systemically important banks.
The Federal Council agrees with the PUK report's assessment that the too-big-to-fail regulation has significant weaknesses. It plans to integrate the Commission's findings into the upcoming enhancements for regulations governing systemically important banks. Additionally, the Council expressed satisfaction with the authorities' actions during the CS crisis and the resolution achieved through UBS's takeover.
Bern business law professor Peter V. Kunz has sharply criticized the PUK report on the Credit Suisse bailout, deeming its nearly 600 pages "useless and pointless." He argues that the report fails to hold authorities accountable, particularly the Swiss Financial Market Supervisory Authority (Finma), which he claims allowed mismanagement to persist. Kunz believes the report's recommendations lack pressure on politicians and suggests that the PUK's efforts were ultimately a waste of time.
The PUK's report on the Credit Suisse crisis has sparked varied reactions from political parties, highlighting mismanagement by bank leaders and calling for stricter regulations. The FDP praises its Federal Councillor for crisis management, while the SP demands a ban on bonuses for UBS managers and compensation for taxpayers. The Greens and Center Party echo calls for enhanced oversight and accountability in the banking sector.
The parliamentary commission of inquiry recommends enhancing the powers of the Swiss Financial Market Supervisory Authority (Finma) to centralize audit supervision of major banks and enforce compliance effectively. It emphasizes the need for improved communication between financial authorities and calls for clearer regulations on "too-big-to-fail" banks, including scrutiny of their capital quality and remuneration practices. The Federal Council is tasked with ensuring transparency in inspections and adapting legal frameworks for better crisis management.
Trending
Subcategory:
Countries:
Companies:
Currencies:
People:

MachinaCore is a highly modular and scalable system that allows users to build custom widgets and tools tailored to their specific financial data needs, while seamlessly integrating with other MachinaLabs products, like Machinary, MachinaAI Modules and MachinaTrader.

Address

Waitlist

We’re granting exclusive early access to the first 500 users from december 20.

© 2024 by Machinary.com - Version: 1.0.0.0. All rights reserved

Layout

Color mode

Theme mode

Layout settings

Seems like the connection with the server has been lost. It can be due to poor or broken network. Please hang on while we're trying to reconnect...
Oh snap! Failed to reconnect with the server. This is typically caused by a longer network outage, or if the server has been taken down. You can try to reconnect, but if that does not work, you need to reload the page.
Oh man! The server rejected the attempt to reconnect. The only option now is to reload the page, but be prepared that it won't work, since this is typically caused by a failure on the server.