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Credit Suisse reported losses of CHF 33.7 billion over twelve years while paying out CHF 39.8 billion in performance bonuses, leading to scrutiny of supervisory authorities. The parliamentary committee found that the Financial Market Authority's oversight was ineffective, particularly in relaxing capital requirements. Following a crisis, Credit Suisse was sold to UBS in March 2023, averting fears of a global financial crisis.
The Swiss parliamentary committee has concluded that Credit Suisse is solely responsible for its dramatic collapse in spring 2023, citing 33.7 billion Swiss francs in losses over twelve years while paying out 39.8 billion in bonuses. Although the Financial Market Authority's supervision was deemed ineffective, no misconduct by authorities was found. The bank was sold to UBS in an emergency sale amid fears of a global financial crisis, following significant losses and failed attempts to stabilize its finances.
The Swiss parliamentary committee has concluded that Credit Suisse is primarily responsible for its dramatic collapse in spring 2023, citing a staggering 33.7 billion francs in losses while paying out 39.8 billion francs in performance bonuses over twelve years. While the Financial Market Authority's supervision was deemed ineffective, the committee found no direct misconduct by the authorities. The emergency sale of Credit Suisse to UBS, prompted by fears of a global financial crisis, ultimately averted wider financial turmoil.
A Swiss parliamentary committee has concluded that Credit Suisse is solely responsible for its dramatic collapse in spring 2023, citing significant financial mismanagement, including losses of 33.7 billion francs while paying out 39.8 billion francs in bonuses. The committee criticized the Financial Market Authority (FINMA) for ineffective supervision and insufficient assertiveness, highlighting the need for better regulations for systemically important banks. Following the bank's difficulties, Credit Suisse was sold to UBS in an emergency sale amid fears of a global financial crisis.
A parliamentary investigation has concluded that Credit Suisse is responsible for its dramatic collapse in spring 2023, citing 33.7 billion Swiss francs in losses over twelve years while paying out 39.8 billion in bonuses. The report criticized the Financial Market Authority for ineffective supervision and insufficient capital requirements. Following its struggles, Credit Suisse was sold to UBS in an emergency sale amid fears of a global financial crisis.
The Swiss parliamentary committee has concluded that Credit Suisse is solely responsible for its dramatic collapse in spring 2023, citing significant financial mismanagement, including losses of 33.7 billion Swiss francs while paying out 39.8 billion in bonuses. While the Financial Market Authority (FINMA) was criticized for ineffective supervision and lax capital requirements, the committee found no misconduct on the part of the authorities. The bank was sold to UBS in an emergency sale amid fears of a global financial crisis, following substantial losses and failed recovery efforts despite external support.
Isabelle Chassot, chairwoman of the Parliamentary Commission of Inquiry into Credit Suisse's collapse, emphasized the importance of reading the full report, which spans over 500 pages, during a press conference in Bern. The investigation focused on the critical developments leading to the March 2023 crisis and the emergency rescue by UBS, with Chassot noting that without federal intervention, a global financial crisis could have ensued. The Commission, which met weekly for 18 months and included all parliamentary groups, adopted its report unanimously, despite challenges related to information security and maintaining secrecy.
The Parliamentary Commission of Inquiry (CEP) has issued 20 recommendations to the Federal Council following the Credit Suisse crisis, emphasizing the need for enhanced powers for Finma, improved inspections, and better risk management. Criticism was directed at former Finance Minister Ueli Maurer for inadequate communication regarding the bank's liquidity issues, which contributed to the crisis. The CEP's report highlights the importance of transparency and accountability in the oversight of systemically important banks to prevent future financial instability.
Former Finance Minister Ueli Maurer is withholding comments on the Parliamentary Commission of Inquiry's report regarding the Credit Suisse crisis, stating he needs to review it first. The report criticizes his lack of communication with the Federal Council and insufficient briefing of his successor, while emphasizing that responsibility primarily lies with Credit Suisse management. PUK President Isabelle Chassot clarified that the commission does not assign personal blame to officials and has not called for any resignations.
The Parliamentary Commission of Inquiry (PUK) has criticized the Federal Council for its inadequate early crisis detection regarding the downfall of Credit Suisse. The report highlights the need for improved cooperation among authorities, better risk management, and calls for stricter regulations for large banks, particularly in light of UBS's significant size relative to Switzerland's GDP. Additionally, the conduct of former Finance Minister Ueli Maurer is scrutinized for insufficient communication with the Federal Council and his successor.
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