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Socialist Roger Nordmann and Finance Minister Karin Keller-Sutter emphasize the need for political unity against UBS's influence, advocating for increased equity capital for the bank. While parliament supports this move, concerns arise about potential cost implications for customers, with regional banks poised to benefit if UBS raises prices. The Federal Council backs the capital requirement, asserting it won't necessarily lead to higher costs for Swiss credit operations.
Following the takeover of Credit Suisse, Swiss authorities have approved reforms to strengthen banking supervision and enhance FINMA's powers over systemically important institutions like UBS. The reforms include tighter "too big to fail" rules and increased capital requirements, aiming to prevent future financial crises. The Parliamentary Commission of Inquiry has called for lessons learned from the CS crisis to be implemented internationally, emphasizing the need for accountability and better management practices in large banks.
The National Council has unanimously praised the PUK report on the Credit Suisse crisis, adopting all motions aimed at reforming "too big to fail" rules and enhancing the assertiveness of FINMA. The PUK's findings highlighted mismanagement at CS and called for stronger capital requirements for systemically important banks. Federal President Karin Keller-Sutter acknowledged the PUK's work, noting that some proposals are already being implemented.
The National Council has unanimously praised the PUK report on the Credit Suisse crisis, adopting all motions to strengthen regulations for systemically important banks. Key proposals include amending "too big to fail" rules, enhancing FINMA's enforcement powers, and ensuring the resolvability of major banks to prevent future crises. The Federal Council is set to implement several of these recommendations.
UBS, Switzerland's largest bank, is rallying support from the business community against stricter capital requirements that could increase costs and reduce competitiveness. The bank warns that a $20 billion capital increase could lead to $2 billion in additional costs, impacting credit conditions for Swiss companies. Concerns over executive bonuses further complicate UBS's position, as high remuneration may undermine public confidence in the financial sector.
UBS is lobbying against stricter capital adequacy rules, arguing that increased equity requirements would raise costs and disadvantage them compared to international competitors. The bank warns that these costs would ultimately be passed on to clients, particularly affecting small and medium-sized enterprises (SMEs) in Switzerland. However, support for UBS is complicated by public backlash over high executive bonuses, with calls for more restraint in management remuneration to maintain trust in the Swiss financial sector.
UBS is rallying support from the business community against stricter capital requirements proposed by the Swiss Confederation, arguing that higher equity costs would burden customers, particularly SMEs. Critics highlight the disparity between astronomical executive bonuses and the need for responsible banking practices, urging UBS to adopt a more measured approach to remuneration to restore public confidence.
UBS is opposing stricter capital adequacy requirements, arguing that increased equity costs would disadvantage it against international competitors and lead to higher client fees, particularly affecting SMEs. Industry representatives support UBS but call for restraint in executive bonuses, emphasizing the need for a stable banking environment. As UBS prepares to disclose its annual report, concerns over excessive managerial salaries could impact public trust in the financial sector.
The Parliamentary Investigation Commission (PUK) has released a report on the collapse of Credit Suisse, highlighting failures in early crisis detection and cooperation among authorities. While the intervention in March 2023 prevented a global financial crisis, the effectiveness of the Financial Market Supervisory Authority (Finma) was questioned, and former Finance Minister Ueli Maurer faced criticism for inadequate communication. The report calls for improved regulations for large banks and emphasizes the need for sufficient capital resources.
The parliamentary commission of inquiry into the collapse of Credit Suisse, involving Basel politicians Maya Graf and Daniela Schneeberger, criticized the bank's management for significant errors and the Swiss Financial Market Supervisory Authority (Finma) for its inadequate intervention. Graf emphasized the need for stronger regulatory tools for Finma and improved cooperation among federal authorities to prevent future crises. The PUK report has been submitted to the Swiss Parliament for discussion in the upcoming spring session.
Daniela Schneeberger
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The information provided herein is generated by experimental artificial intelligence and is for informational purposes only.
politicians resist UBS influence while pushing for increased bank capital requirements
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