The upcoming CS-PUK report is set to illuminate the actions of institutions and individuals involved in the Credit Suisse crisis, influencing future Swiss banking regulations. The Parliamentary Commission of Inquiry has scrutinized the roles of key figures, including former Finance Minister Ueli Maurer and the Swiss National Bank, amid criticisms of inadequate crisis management and oversight. Recommendations from the report may impact the ongoing debate on capital requirements for "too big to fail" banks, with potential amendments to regulations expected by mid-2025.
UBS's acquisition of Credit Suisse, finalized on March 19, 2023, marked the end of a turbulent era for the latter, which faced significant financial challenges, including massive losses and client withdrawals. The Swiss government and the Swiss National Bank provided substantial support, including liquidity assistance and guarantees totaling CHF 109 billion. The Financial Market Supervisory Authority, Finma, is now exploring additional crisis management options following the merger.
The PUK report on the Credit Suisse crisis is anticipated to reveal shortcomings in the oversight by FINMA and other authorities, with speculation about its content being tightly controlled due to legal liabilities. The investigation will assess the management of federal bodies during the emergency merger with UBS and may lead to recommendations for revising too-big-to-fail legislation. The report's release date remains uncertain, with potential dates in December or January.
The PUK report on the Credit Suisse crisis is anticipated to reveal shortcomings in the oversight by FINMA and other authorities, with speculation about its findings being tightly controlled due to legal liabilities. The report will likely address the failures of key figures, including FINMA Chairwoman Marlene Amstad and former officials Thomas Jordan and Ueli Maurer, while also examining the implications for too-big-to-fail legislation. An international comparison of financial supervision will inform recommendations for future regulatory frameworks.
The imminent PUK report will investigate the causes behind Credit Suisse's collapse in March 2023, focusing on the roles of key authorities like FINMA, the Swiss National Bank, and the Federal Department of Finance. The commission, led by Isabelle Chassot, has conducted over sixty interviews and will address regulatory failures and the need for reforms in the Swiss financial system. Following its publication, the findings will inform legislative changes and regulatory measures to prevent future banking crises.
Tensions rise ahead of the Credit Suisse investigation report, with former Finance Minister Ueli Maurer facing scrutiny for his inaction during the crisis. Current Minister Karin Keller-Sutter is seen as a decisive figure, while former executives like Axel Lehmann grapple with legal uncertainties. The report may intensify potential legal actions against those involved.
In the summer of 2022, Credit Suisse engaged in challenging negotiations with the Swiss Financial Market Supervisory Authority (Finma) regarding the sale of its investment banking division, a move aimed at revitalizing the bank. The plan, proposed by the new management team led by CEO Ulrich Körner, was ultimately rejected due to the need for regulatory changes. This period of intense discussion followed the leadership transition from Chairman Antonio Horta-Osorio to Axel Lehmann and the appointment of Körner in July.
Axel Lehmann, the former Chairman of Credit Suisse, has faced criticism for offering crisis management advice on LinkedIn after the bank's takeover by UBS. His tips, which emphasize recognizing the full extent of a crisis and considering soft factors in decision-making, have been met with skepticism, with users questioning why he didn't apply these principles during his tenure. Credit Suisse's fate was sealed on June 12, 2023, marking a significant moment in the European financial sector.
Ulrich Körner, head of Credit Suisse, faced criticism for his handling of the bank's crisis, particularly after a failed "Körner Plan" that aimed to address a significant capital shortfall. Despite receiving regulatory leniency, the bank's equity was insufficient, leading to a massive outflow of funds and a plummeting share price. As the Parliamentary Commission of Inquiry prepares to release its findings, Körner's attempts to shift blame may not shield him from accountability for the bank's failures.
The Körner plan aimed to drastically wind down Credit Suisse's investment bank but was rejected by FINMA, which required compliance within existing regulations. Despite intense discussions, CS's request for a more favorable valuation method was denied, leading to a parallel, less ambitious plan that ultimately failed to restore market confidence.
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.
