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The PUK will present its investigation report on the emergency takeover of Credit Suisse by UBS today at 10:30 a.m., following a year and a half of inquiry into the roles of various authorities. The report aims to clarify responsibilities and propose reforms, particularly regarding the "too big to fail" regime for major banks. Key figures, including Finma President Marlene Amstad, are under scrutiny, with the findings expected to influence future regulatory measures.
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.
Critics argue that Thomas Jordan, head of the National Bank, failed to support Credit Suisse adequately during its crisis, opting for a passive approach that left the federal government to handle a CHF 9 billion forced sale. Meanwhile, Axel Lehmann, the last Chairman of CS, defends his tenure, attributing the bank's decline to his predecessors and facing potential legal challenges. Finance Minister Karin Keller-Sutter is praised for her decisive actions post-crisis, but questions remain about the implications of a state-backed UBS and the regulatory failures of FINMA under Marlene Amstad.
The final report on the Credit Suisse crisis, released by the Parliamentary Commission of Inquiry, scrutinizes the actions of key institutions and individuals, including FINMA and the Swiss National Bank, during the bank's emergency merger with UBS. It highlights potential failings of former Finance Minister Ueli Maurer and assesses the collaboration among financial authorities. The findings will inform future regulations on "too big to fail" banks, with proposed amendments expected by mid-2025.
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.
Jerome Powell, chair of the US Federal Reserve, ruled out the possibility of the Fed holding Bitcoin, citing legal restrictions under the Federal Reserve Act. His comments led to a 5.7% drop in Bitcoin's price, reflecting market concerns amid ongoing discussions about Bitcoin as a potential reserve asset, particularly following Donald Trump's pro-crypto stance and proposals from policymakers like Senator Cynthia Lummis. The broader cryptocurrency market also suffered losses, with Ethereum and Solana dropping significantly.
Inspectors from the domestic Competition Committee raided the Athens offices of Nestle Hellas, investigating potential cartel activities and abuse of market dominance. A representative confirmed the raid, which follows a history of scrutiny, including a €30 million fine in 2009 for anti-competitive practices related to coffee. The committee clarified that the inspections do not imply guilt or predict the investigation's outcome.
The US government has rejected Sam Bankman-Fried's appeal to overturn his conviction related to the FTX collapse, deeming his claims of trial bias unfounded. The authorities maintained that the jury's verdict was sound and that the trial's procedures were lawful, dismissing his arguments for a retrial as lacking merit. Bankman-Fried's assertions regarding judicial bias and the overstated financial troubles of FTX were also deemed irrelevant to the case.
UBS Wealth Management USA has agreed to pay $3.5 million to settle allegations of inadequate supervision over brokers' short-term trading in syndicate preferred stock. The settlement includes a censure, $2.65 million in disgorged commissions, a $500,000 fine, and nearly $344,000 in customer restitution. From 2017 to 2018, UBS brokers recommended almost 2,000 unsuitable trades, violating regulatory rules by failing to establish proper supervisory procedures.
UBS Wealth Management USA has agreed to pay $3.5 million to settle allegations of inadequate supervision over brokers' short-term trading in syndicate preferred stock. The settlement includes a censure, $2.65 million in disgorged commissions, a $500,000 fine, and nearly $344,000 in customer restitution. From 2017 to 2018, UBS brokers recommended almost 2,000 unsuitable trades, violating regulatory rules by failing to establish proper supervisory procedures.
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