The Swiss stock exchange closed lower, with the SMI down 0.26% at 11,384.92 points, marking a 3% loss over the week and reducing year-to-date gains to just 2%. Investor uncertainty stems from the Federal Reserve's cautious approach to interest rate cuts and concerns over a potential U.S. government shutdown. Notable declines were seen in UBS, Partners Group, and various insurance companies, while Idorsia plummeted 50.35% due to delays in drug negotiations.
The business community has welcomed the conclusions of the Parliamentary Commission of Inquiry into the Credit Suisse collapse, which holds former directors accountable and calls for enhanced regulatory measures. The Swiss Financial Market Supervisory Authority (Finma) is criticized for not fully utilizing its powers, while recommendations include centralizing audit supervision and granting Finma greater enforcement capabilities. The Swiss National Bank acknowledges the report and emphasizes its commitment to strengthening financial regulation.
A parliamentary inquiry has concluded that Credit Suisse's management is primarily responsible for the bank's collapse, while the Swiss financial regulator, Finma, faced criticism for its ineffective oversight. The report highlights the bank's history of scandals and regulatory failures, recommending enhanced powers for Finma to prevent future crises.
A parliamentary inquiry has concluded that Credit Suisse's management is primarily responsible for the bank's collapse, while the Swiss financial regulator, Finma, faced criticism for its ineffective oversight. The report highlights the bank's history of scandals and regulatory failures, recommending enhanced powers for Finma to prevent future crises.
The collapse of Credit Suisse, attributed to years of mismanagement, prompted a Swiss parliamentary inquiry that criticized both the bank's leadership and the supervisory authority, Finma. The findings may lead to stricter regulations for systemically important banks, potentially requiring UBS to reserve an additional $15 billion to $25 billion in capital.
A parliamentary commission of inquiry has found that Swiss authorities made significant errors leading to the collapse of Credit Suisse, attributing the loss of trust primarily to the bank's Board of Directors and Executive Board. The investigation revealed that the Financial Market Supervisory Authority (Finma) granted excessive capital relief and failed to act decisively, while the government was criticized for its lack of transparency. In response, the Swiss government plans to reform banking regulations, including stricter capital requirements, and has proposed 30 recommendations to prevent future crises.
UBS shares fell 0.4% to CHF 26.77, making it one of the SMI's losers, with a low of CHF 26.25 today. The stock is currently 9.47% below its 52-week high of CHF 29.57 and 15.84% above its low of CHF 22.53. In Q3 2024, UBS reported earnings per share of CHF 0.39, with sales of CHF 18.86 billion, a slight decline from the previous year.
Credit Suisse, a traditional Swiss bank established in 1856 by Alfred Escher, faced a significant crisis that culminated in its forced sale to UBS in March 2023. This event marked a dramatic decline for the institution, driven by a series of critical milestones leading to its downfall.
A crisis in customer service has emerged, highlighting deficiencies in federal authority responses. In related news, Banque cantonale vaudoise (BCV) has appointed Anne Maillard as the new head of retail banking, bringing experience from her previous role at BCF.
UBS Group AG is considering job cuts in France due to a weakening economy and the ongoing integration of Credit Suisse. The bank's spokesman noted that the restructuring is linked to a less favorable market environment and follows a drop in French business confidence, with the economy expected to grow only 0.2% per quarter in early 2024. The plan is currently being presented to the works council, with support measures for affected staff to be developed in collaboration with employee representatives.
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