Around a thousand employees at Credit Suisse are affected as UBS completes its acquisition, marking the end of CS's 167-year history. The Swiss parliament debates the emergency takeover, while a Parliamentary Commission of Inquiry investigates the circumstances surrounding it. UBS has also terminated federal guarantees, and numerous complaints regarding the financial terms of the takeover have been filed.
The parliamentary commission of inquiry (PUK) has concluded that years of mismanagement at Credit Suisse (CS) led to its downfall, while also highlighting failures by the federal government in regulating the bank. The PUK found no misconduct by authorities during the crisis but called for improved financial supervision and better communication among regulatory bodies. Criticism was directed at former CS executives and Finance Minister Ueli Maurer for their roles in the bank's issues, particularly regarding compliance with supervisory demands.
Ueli Maurer, Switzerland's former Finance Minister, faced criticism for withholding crucial information about Credit Suisse's precarious situation from his Federal Council colleagues. His solitary approach and lack of transparency hindered effective management during the bank's crisis, ultimately leading to significant challenges for the government as it navigated the fallout from the bank's instability.
The Parliamentary Commission of Inquiry's 569-page report on the Credit Suisse crisis reveals extensive mismanagement by the bank's leadership, with over CHF 11 billion in fines and a total loss of CHF 32.3 billion from 2012 to 2022. It criticizes the Financial Market Supervisory Authority for inadequate oversight and highlights the Federal Council's leniency towards big banks. The report concludes with 20 recommendations and 11 motions aimed at improving regulatory frameworks and preventing future crises.
Former Credit Suisse executives and Swiss authorities attended hearings regarding the management of the CS crisis, with the PUK set to make twenty recommendations to the Federal Council by spring 2025. The report criticizes the lack of tools available to authorities and highlights the need for improved cooperation and information sharing among them. The PUK also noted that the handover of responsibilities from former Finance Minister Ueli Maurer to Karin Keller-Sutter was inadequate, particularly concerning the critical CS dossier.
The PUK report reveals that Credit Suisse faced imminent insolvency, prompting urgent discussions among top officials about nationalization or a merger with UBS. Ultimately, a takeover was agreed upon, with UBS paying CHF 3 billion, while the Swiss government prepared for potential state intervention. The report highlights significant miscommunication and differing opinions among financial authorities regarding the bank's rescue options.
The Zurich cantonal government will ban the purchase of new Rottweilers starting in 2025 due to safety concerns following serious bite incidents. Current owners must apply for a license to keep their dogs, as Rottweilers are deemed to pose a higher risk compared to other breeds.In related news, the Parliamentary Investigation Committee (PUK) is set to release its report on the downfall of Credit Suisse, covering events from 2015 to the emergency merger with UBS. The findings will be presented to Parliament, highlighting the management of authorities during this crisis.
The Parliamentary Commission of Inquiry will release its findings today regarding the emergency merger of Credit Suisse with UBS, following extensive hearings since July 2023. The investigation has included testimonies from federal advisers and central authority heads, amid allegations of secret meetings involving key financial leaders prior to the merger. In light of the report's publication, the Swiss Bank Employees Association has called for the resignation of the FINMA chairwoman.
The parliamentary commission of inquiry (CEP) is set to unveil its report today on the federal authorities' handling of the Credit Suisse crisis, which culminated in UBS's hurried acquisition of the bank in March 2023. After 18 months of investigation, the CEP analyzed the crisis in four phases, from pre-crisis management to the emergency merger's implementation, conducting over 60 hearings and filing two criminal complaints related to confidential information disclosures. This exceptional parliamentary tool, comprising 14 members from six political parties, aims to shed light on Swiss financial governance.
The PUK will present its investigation report on the emergency takeover of Credit Suisse by UBS today at 10:30 a.m., following a year and a half of inquiry into the roles of various authorities. The report aims to clarify responsibilities and propose reforms, particularly regarding the "too big to fail" regime for major banks. Key figures, including Finma President Marlene Amstad, are under scrutiny, with the findings expected to influence future regulatory measures.
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