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The Swiss parliamentary commission's investigation into the Credit Suisse debacle reveals that lobby influence has hindered higher equity allocations, raising concerns about the stability of large banks essential to the Swiss economy. The report emphasizes the risks posed by insufficient capitalization relative to the banks' operational risks, echoing lessons learned since the UBS bailout in 2008. As Switzerland grapples with the implications of these findings, the need for robust financial oversight becomes increasingly critical.
Law professor Peter V. Kunz criticizes the Parliamentary Investigation Commission's (PUK) report on the Credit Suisse crisis, stating it failed to provide meaningful insights or solutions after 1.5 years of investigation. He argues that the report's 20 recommendations are superficial and that political reluctance to hold authorities accountable has delayed necessary reforms, leaving the banking system vulnerable to future crises.
The Parliamentary Commission of Inquiry's report on Credit Suisse's collapse highlights years of mismanagement and calls for stronger regulations for systemically important banks. Reactions from political and business leaders emphasize the need for effective oversight, with some advocating for a "Lex UBS" to manage the risks posed by the newly formed mega-bank. The Federal Council acknowledges the report's findings and plans to incorporate them into future regulatory frameworks.
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.
A PUK has been established in Switzerland for the first time in nearly 30 years, producing a comprehensive 500-page report on the authorities' response to the Credit Suisse crisis. The findings include both praise and criticism, particularly directed at the former management, raising questions about the preparedness of Swiss politicians for future financial crises. For more insights, listen to the podcast series "The end of Credit Suisse" from "News Plus."
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.
Ripple's MoneyTap has achieved significant adoption in Japan, with partnerships involving six regional banks, including Shinonome Shinkin Bank and Nagoya Bank, contributing to a $13 billion increase in international remittances. Launched by SBI Holdings, MoneyTap allows instant transactions via QR codes or phone numbers, and now serves millions of users across the country. Remarkably, Ripple has partnered with up to 80% of the Japanese banking industry, highlighting its growing influence in the financial sector.
Business circles have reacted cautiously to the findings of the Parliamentary Commission of Inquiry into the Credit Suisse collapse, which holds former managers accountable while recommending enhanced regulatory measures. The Swiss Bankers Association and economiesuisse urge against excessive regulation, advocating for improved liquidity support for systemically important banks and cautioning against penalizing UBS, the buyer of Credit Suisse. Finma acknowledges the criticisms but refrains from labeling them as serious shortcomings, while also welcoming proposals for increased powers to enforce regulations effectively.
UBS Group AG extended a credit line to commodity trader 2Rivers three months prior to the UK government imposing sanctions on the firm, labeling it a “lynchpin” in Russian oil flows. 2Rivers was formed earlier this year through a rebranding of Coral Energy Group following a management buyout.
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