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The National Council has called for strengthening the role of FINMA and increasing equity requirements for banks following the Credit Suisse collapse. Proposed measures include centralized supervision of audits, enhanced powers for FINMA to enforce decisions, and limitations on capital and liquidity support for large banks. Additionally, the Council seeks to address executive bonuses and improve shareholder power in systemically important companies.
The National Council has approved measures to strengthen the role of FINMA and enhance the own funds of systemic banks following the Credit Suisse collapse. The Parliamentary Commission of Inquiry emphasized the need for better regulation and oversight, particularly for UBS, which absorbed Credit Suisse to avert a financial crisis. Proposed reforms include centralized supervision of audits and the ability for FINMA to impose fines and enforce decisions, with the Federal Council supporting these initiatives while cautioning that future crises may still arise.
UBS is intensifying its lobbying efforts amid significant political decisions affecting Switzerland's financial future, emphasizing the need for a constructive dialogue with stakeholders. CEO Sergio Ermotti warns against excessive capital requirements post-Credit Suisse takeover, arguing it could jeopardize UBS's competitiveness. The bank's market capitalization has nearly doubled since the acquisition, which UBS claims cost significantly more than the reported CHF 3 billion.
Cédric Wermuth, co-president of the Socialist Party, criticized the Swiss People's Party (SVP) for failing to act on banking reforms after the Credit Suisse collapse, claiming their initial outrage was merely electioneering. Despite the SVP's earlier demands to dismantle UBS and ensure no bank is "too big to fail," they have since postponed key decisions, leaving the risk of inaction high. Wermuth argues that the banking lobby continues to dominate Parliament, echoing concerns from the past financial crisis.
The SVP's initial outcry for stricter banking regulations following the Credit Suisse collapse in spring 2023 has faded, with the party now retracting proposals and delaying decisions. Critics, including SP leader Cédric Wermuth, argue that this reflects a return to prioritizing banking interests over necessary reforms, echoing past crises where outrage led to inaction. The Federal Council's new measures aim to enhance oversight, but skepticism remains about their effectiveness in preventing future banking failures.
The SVP has retracted its radical proposal to break up big banks, initially called for after the Credit Suisse crisis, citing better regulatory alternatives from the Federal Council and the parliamentary commission. Thomas Matter emphasized that the new measures aim to significantly reduce risks, particularly in investment banking, without the need for drastic structural changes.
André Helfenstein, the former CEO of CS Switzerland, has secured new roles on the Board of Directors for the Gaydoul Group and Amag Leasing AG, marking his transition from banking to other sectors. His experience in corporate finance is expected to enhance capital procurement and leasing operations. Additionally, he will join the Baloise Board of Directors at the next Annual General Meeting, following the establishment of his consulting firm, Metis e4i GmbH.
Criminal investigators and the parliamentary commission (PUK) overlooked critical capital weaknesses at Credit Suisse (CS), notably a regulatory "filter" that concealed CHF 11.9 billion in capital shortfalls. Despite warnings from authorities and expert reports, key figures like CFO David Mathers evaded accountability, leading to CS's collapse. The Swiss Attorney General's office found insufficient grounds for criminal proceedings, while Mathers enjoys early retirement after years of misleading practices.
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.
UBS has intensified lobbying efforts to prevent new regulations following the Credit Suisse crisis, with significant donations to conservative parties raising concerns. The SP calls for a ban on party funding from UBS, arguing that it undermines regulatory independence and accountability. The PUK report highlights how bank lobbying contributed to regulatory fatigue, impacting the effectiveness of FINMA.
Thomas Matter
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