The final report from the parliamentary commission investigating the merger between UBS and Credit Suisse has sparked significant reactions from key stakeholders, including Finma and the SNB, as well as various political parties. Ueli Maurer from the PLR criticized the Finance Department for being unprepared during the crisis, while Finance Minister Karin Keller-Sutter was praised for her effective crisis management that averted further turmoil.
The Greens and Socialist Party in Switzerland are urging authorities to expedite the strengthening of "too big to fail" legislation following concerns about the risks posed by UBS, the newly formed megabank after its takeover of Credit Suisse. They criticize the bank's management for excessive bonuses and call for strict regulations, including a ban on bonuses and improved liquidity requirements. Meanwhile, other parties emphasize the need for effective financial supervision without overregulation, highlighting the importance of UBS in supporting the Swiss economy.
The ICC report on Credit Suisse has been criticized as uncritical and ineffective, with expert Peter V. Kunz labeling its 20 recommendations as useless. He argues that the report absolves authorities of responsibility, particularly highlighting the failures of the Swiss Financial Market Supervisory Authority (FINMA) while acknowledging the Swiss National Bank's professionalism. Overall, Kunz believes the report wasted valuable time without exerting necessary pressure on policymakers.
The Parliamentary Commission of Inquiry concluded that Credit Suisse's downfall in March 2023 stemmed from years of mismanagement by its Board and management, rather than federal authorities' actions. The report criticized delays in decision-making and a lack of coordination among officials, emphasizing the need for reforms in oversight and emergency planning for systemically important banks. Despite the challenges, the federal authorities managed to maintain Credit Suisse's solvency during the crisis, averting a global financial disaster.
Finance Minister Karin Keller-Sutter's crisis management during the Credit Suisse debacle has been praised for preventing an international financial crisis, while her predecessor, Ueli Maurer, faced criticism for inaction. The FDP calls for earlier intervention from the Swiss Financial Market Supervisory Authority (Finma) and emphasizes the need for systematic application of existing supervisory tools rather than indiscriminate capital increases for systemically important banks.
Bern business law professor Peter V. Kunz has sharply criticized the PUK report on the Credit Suisse bailout, deeming its nearly 600 pages "useless and pointless." He argues that the report fails to hold authorities accountable, particularly the Swiss Financial Market Supervisory Authority (Finma), which he claims allowed mismanagement to persist. Kunz believes the report's recommendations lack pressure on politicians and suggests that the PUK's efforts were ultimately a waste of time.
The PUK's report on the Credit Suisse crisis has sparked varied reactions from political parties, highlighting mismanagement by bank leaders and calling for stricter regulations. The FDP praises its Federal Councillor for crisis management, while the SP demands a ban on bonuses for UBS managers and compensation for taxpayers. The Greens and Center Party echo calls for enhanced oversight and accountability in the banking sector.
The Swiss Parliament's inquiry into Credit Suisse's collapse blames the bank's management for eroding confidence and jeopardizing its existence. While the inquiry found no misconduct by authorities, it criticized the lack of transparency in crisis discussions and the Federal Council's hesitance in regulatory responses. The report highlights inadequate communication during the transition between former and current finance ministers regarding the bank's stability.
A Swiss parliamentary commission has attributed Credit Suisse's downfall to years of mismanagement, while also criticizing the Swiss Federal Financial Market Supervisory Authority (FINMA) for its lack of transparency and ineffective supervision. The inquiry revealed that discussions about the bank's potential collapse were poorly coordinated, with former Finance Minister Ueli Maurer failing to adequately inform his successor about the bank's precarious situation.
The PUK report reveals that Credit Suisse's crisis was self-inflicted due to years of mismanagement and scandals, exacerbated by relaxed capital requirements and insufficient regulatory oversight. Despite warning signals, authorities failed to act decisively, leading to a lack of transparency and inadequate crisis detection. The report calls for urgent reforms in banking legislation and supervision to prevent future failures, emphasizing the need for a robust regulatory framework as Switzerland is left with only one globally significant bank.
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