UBS played a pivotal role in the controversial write-off of $17 billion in Credit Suisse's AT1 bonds during its takeover negotiations, a move that significantly benefited UBS financially. Despite claims of ignorance from UBS Chairman Colm Kelleher, investigations reveal that UBS initiated the discussion on the bond wipe-out, which was crucial for the merger's success. This decision has led to global lawsuits from investors and potential financial repercussions for Swiss taxpayers.
Credit Suisse's collapse in March 2023 was attributed to years of mismanagement, with the Parliamentary Commission of Inquiry highlighting the board's failure to heed regulatory warnings. While federal authorities were found to have shortcomings, they acted decisively to prevent a broader financial crisis during the UBS takeover. The report emphasizes the need for improved oversight and timely decision-making in the banking sector.
The final report from the parliamentary commission investigating the merger between UBS and Credit Suisse has sparked significant reactions from key stakeholders, including Finma and the SNB, as well as various political parties. Ueli Maurer from the PLR criticized the Finance Department for being unprepared during the crisis, while Finance Minister Karin Keller-Sutter was praised for her effective crisis management that averted further turmoil.
The Federal Council affirms its actions during the Credit Suisse crisis, welcoming the Parliamentary Commission of Inquiry's positive assessment of the UBS takeover. The report highlights weaknesses in too-big-to-fail regulations and supports FINMA's call for expanded supervisory powers, including enhanced communication and earlier intervention capabilities.
The PUK report on the Credit Suisse (CS) collapse reveals a decade of mismanagement, with the bank incurring losses of 3.2 billion francs while executives received 32 billion francs in bonuses. It criticizes the ineffective banking supervision by FINMA, hindered by political interference from right-wing parties. Proposed measures to prevent future crises echo previous rejected reforms, raising doubts about genuine change in the financial sector's oversight.
The final report from the Parliamentary Commission of Inquiry (PCI) on the Credit Suisse crisis will influence Swiss banking regulations, focusing on the actions of authorities during the emergency merger with UBS. It scrutinizes the conduct of FINMA and the Swiss National Bank, highlighting potential failings by former Finance Minister Ueli Maurer. Recommendations from the PCI are expected to shape future regulations for "too big to fail" banks, with amendments likely to be proposed by the Federal Council in 2025.
The Parliamentary Commission of Inquiry (PUK) found no misconduct by Swiss authorities during the emergency merger of Credit Suisse and UBS, attributing the crisis primarily to Credit Suisse's mismanagement. However, it criticized the lack of coordination among authorities and inadequate information provided by Finance Minister Ueli Maurer. The PUK emphasized the need for improved Too-Big-To-Fail regulations and better crisis management strategies moving forward.
The PUK report on Credit Suisse will be unveiled on Friday, revealing key findings from the investigation into the bank's downfall. The focus is on the roles of FINMA, the Swiss National Bank, and the Federal Council's Department of Finance, following 62 hearings. Recommendations regarding regulatory powers are anticipated.
AllianceBernstein is seeking $225 million from Switzerland over the cancellation of Credit Suisse's $17 billion AT1 bonds during its merger with UBS. The firm claims this action constituted an illegal invasion of investors' property rights, leading to a lawsuit in the U.S. against the Swiss government, which asserts sovereign immunity. The case reflects ongoing tensions from the Credit Suisse scandal, with bondholders hoping for a favorable outcome based on the legal expertise of their representation.
AllianceBernstein plans to sue the Swiss government for $225 million over the cancellation of $17 billion in Credit Suisse AT1 bonds during UBS's takeover. This lawsuit, set to add AB as a plaintiff next month, will increase the total claim to approximately $375 million, alleging unlawful interference with investors' property rights. The case highlights the contentious aftermath of the Swiss Financial Market Supervisory Authority's decision that deemed the bonds worthless.
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