Credit Suisse's collapse in March 2023 was attributed to years of mismanagement, with the Parliamentary Commission of Inquiry highlighting the board's failure to heed regulatory warnings. While federal authorities were found to have shortcomings, they acted decisively to prevent a broader financial crisis during the UBS takeover. The report emphasizes the need for improved oversight and timely decision-making in the banking sector.
The FDP blames former Finance Minister Ueli Maurer for the Credit Suisse crisis, citing his failure to establish a liquidity safety net and provide transparent communication. In contrast, Die Mitte calls for stronger financial regulation, while the SP accuses bourgeois politicians of weakening FINMA, advocating for UBS downsizing and increased capital requirements. FINMA supports the call for enhanced powers and acknowledges the need for improved supervision following the crisis.
The Parliamentary Commission of Inquiry has concluded that the collapse of Credit Suisse in March 2023 stemmed from years of mismanagement, primarily by the bank's Board of Directors and management, who ignored regulatory warnings. While federal authorities were criticized for slow regulatory adjustments, they effectively managed the crisis in March 2023, averting a global financial disaster by facilitating Credit Suisse's takeover by UBS. The report emphasizes the need for lessons to be learned to prevent future occurrences.
The Parliamentary Commission of Inquiry's 569-page report on the Credit Suisse crisis reveals extensive mismanagement by the bank's leadership, with over CHF 11 billion in fines and a total loss of CHF 32.3 billion from 2012 to 2022. It criticizes the Financial Market Supervisory Authority for inadequate oversight and highlights the Federal Council's leniency towards big banks. The report concludes with 20 recommendations and 11 motions aimed at improving regulatory frameworks and preventing future crises.
Matthias Michel, a member of the Parliamentary Commission of Inquiry, criticized the years of mismanagement at Credit Suisse, which he believes led to a loss of confidence before the bank's collapse in early 2023. He noted that Switzerland had been a leader in banking regulation until 2015 but faced increasing pressure for a state liquidity backstop for systemically important banks since 2016. Following the crisis, Parliament is set to address the legislative framework for this Public Liquidity Backstop.
A parliamentary commission of inquiry has concluded that mismanagement by Credit Suisse's leadership led to the bank's crisis, while authorities successfully averted a global financial disaster through intervention in March 2023. The report, spanning over 500 pages, criticizes the Federal Council for hesitance in implementing crucial liquidity guarantees and highlights the need for improved regulatory frameworks for systemically important banks. Additionally, it points to shortcomings in the oversight by the Financial Market Supervisory Authority (FINMA) and criticizes former Finance Minister Ueli Maurer for inadequate communication regarding the crisis.
The parliamentary commission of inquiry into the Credit Suisse collapse, which occurred on March 19, 2023, is set to release its findings. Chaired by Isabelle Chassot, the commission scrutinizes the roles of federal authorities, including the Federal Council and the Swiss National Bank, while former Credit Suisse executives face limited accountability. The report aims to clarify the failures that led to the bank's downfall and assess the effectiveness of the "Too Big to Fail" regulation.
Axel Lehmann, Chairman of Credit Suisse, faces scrutiny over the bank's decline, attributing blame to his predecessors while defending his actions during the crisis. Legal challenges loom, including a lawsuit in the U.S. for allegedly providing false information, as the Parliamentary Commission of Inquiry investigates the bank's management and regulatory failures. The fallout raises questions about the effectiveness of the Financial Market Supervisory Authority and the National Bank's responses during the crisis.
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