The current Chairman of the Swiss National Bank (SNB), Martin Schlegel, expressed a preference for nationalizing Credit Suisse rather than selling it to UBS, contrasting with the views of his predecessor Thomas Jordan and Finance Minister Karin Keller-Sutter. This disagreement was revealed by a parliamentary commission of inquiry. Schlegel has held the SNB presidency since October 2024.
The Parliamentary Commission of Inquiry revealed a split within the Swiss National Bank (SNB) regarding the Credit Suisse (CS) crisis. While then-Chairman Thomas Jordan and Finance Minister Karin Keller-Sutter favored a UBS takeover, SNB Vice President Martin Schlegel advocated for nationalization, believing it would better ensure financial stability. Additionally, FINMA President Marlene Amstad preferred a restructuring of CS that would keep it under private ownership, but the UBS acquisition ultimately proceeded at a bargain price.
National Bank Chairman Martin Schlegel advocated for the nationalization of Credit Suisse, opposing the takeover by UBS favored by then National Bank Chairman Thomas Jordan and Finance Minister Karin Keller-Sutter. This disagreement was revealed by the Parliamentary Commission of Inquiry.
The PUK report reveals significant failings among Swiss authorities in managing the Credit Suisse crisis, highlighting a lack of coordination, mistrust, and delayed action that contributed to the bank's downfall. Despite portraying a successful rescue, the report exposes the inadequacies of FINMA, the SNB, and the Federal Council in crisis management and regulatory oversight. The findings underscore the need for accountability and reform to prevent future banking failures.
The Parliamentary Commission of Inquiry (CEP) is investigating the failures that led to Credit Suisse's collapse, focusing on the roles of key officials and the interaction between financial authorities. The report, expected soon, will address whether regulatory bodies like Finma should have acted sooner and if they need more powers to prevent future crises. Additionally, it will explore the adequacy of capital requirements for major banks in Switzerland.
A recent interest rate cut by the Swiss National Bank has positioned Zurich to potentially surpass Hong Kong as the world's most expensive city for real estate. With the key interest rate halved to 0.5 percent, home prices in Zurich are expected to rise by 3.5 percent in 2025, further increasing the financial burden on young families seeking home ownership. As prices in Zurich outpace those in major cities like New York, Paris, and London, the real estate market is poised for continued growth despite concerns over affordability.
The Parliamentary Commission of Inquiry (PUK) is set to release its report on the Credit Suisse collapse, focusing on the failures of authorities like FINMA and the Federal Department of Finance. Key figures, including former Finance Minister Ueli Maurer and FINMA head Marlène Amstad, are under scrutiny for their roles in the bank's downfall. The report aims to identify necessary reforms and whether FINMA requires more power to prevent future crises.
The Swiss National Bank (SNB) has lowered its key interest rate by 0.5 percentage points, prompting several banks to anticipate significant cuts in savings rates. While Raiffeisen and Bank Cler have temporarily maintained their rates, others like Zuger Kantonalbank and Yuh are set to reduce theirs starting January 1, 2025. The outlook for savers remains grim, with many banks already tightening rates since October, and only a few institutions, such as the Cantonal Banks of Geneva and Thurgau, still offering higher rates.
Savers are facing further reductions in interest rates as the Swiss National Bank (SNB) has lowered its key interest rate by 0.5 percentage points to 0.5 percent. This decision, made by new President Martin Schlegel, is expected to prompt banks like Yuh and Zuger Kantonalbank to cut their savings interest rates significantly. Experts predict that savers will receive even less on their account assets in the near future.
Martin Schlegel, the new President of the Swiss National Bank, made a notable debut at his first media conference, opting for a more open and engaging style compared to his predecessor. He announced a significant interest rate cut of half a percentage point and encouraged direct questions to his fellow Governing Board members, signaling a potential shift towards greater transparency in central bank communication. Schlegel's approach contrasts with the traditionally secretive nature of central banking, hinting at a new era of interaction with the media and the public.
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.
