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The recent discussions in Bern have intensified around the conclusion of negotiations between Switzerland and the EU, alongside the Parliamentary Investigation Committee's report on the Credit Suisse emergency merger. Party leaders expressed contrasting views, with SVP's Martullo-Blocher criticizing the government's approach, while SP's Meyer and FDP's Burkart welcomed the negotiation outcomes, emphasizing the importance of wage protection and the continuation of bilateral agreements. The debate highlights ongoing concerns about sovereignty and immigration control amid evolving relations with the EU.
Switzerland faces critical decisions regarding its banking regulation and EU relationship, highlighted by the recent PUK report on Credit Suisse's collapse. The report underscores the need for stronger oversight and equity capital, while the EU treaty raises questions about sovereignty and direct democracy. Politicians must act decisively to avoid repeating past mistakes and ensure the nation's stability and growth.
Isabelle Chassot, President of the PUK, led an extensive investigation into the downfall of Credit Suisse, highlighting the bank's mismanagement and lack of transparency. The PUK's report calls for stronger supervisory measures and accountability for banks, emphasizing the need for effective regulation to prevent future crises. Chassot expressed concern over the Federal Council's decision-making process during the crisis, noting a lack of thorough documentation and trust among members.
UBS shares fell 1.6% to CHF 26.46 in early trading, marking a decline from a 52-week high of CHF 29.57 reached on October 30, 2024. The company reported a profit of CHF 0.39 per share for the quarter ending September 30, 2024, despite a slight year-on-year revenue drop to CHF 18.86 billion. Analysts anticipate a dividend increase to USD 0.819 for 2024.
A report from Swiss MPs attributes the collapse of Credit Suisse to "years of mismanagement," highlighting a bank run that saw both wealthy clients and ordinary customers withdraw funds. The bank, which had over 50,000 employees globally, was ultimately rescued by UBS with support from the Swiss government. While the report criticized regulators and the government, it placed the primary blame on the bank's management.
The PUK report on Credit Suisse's downfall has sparked a political debate in Switzerland over the need for stricter banking regulations versus reliance on responsible management. While left-wing parties advocate for tighter rules, particularly regarding UBS's influence in politics, right-wing factions blame regulatory failures on FINMA. The Federal Council is expected to propose new legislation incorporating the report's findings.
The Parliamentary Commission of Inquiry into the Credit Suisse crisis concluded that the situation was self-inflicted, while acknowledging that a global financial crisis was averted in 2023. Finance Minister Karin Keller-Sutter supports the PUK's recommendations for improved banking regulation but rejects calls to restrict capital and liquidity requirements. Political parties are divided on how to address the supervisory authority Finma, with some advocating for its strengthening and others calling for accountability for its past actions.
Groupe BPCE has received regulatory approval for its cryptocurrency subsidiary, Hexarq, allowing it to offer crypto services to its 35 million customers starting in 2025. This PSAN registration enables services like custody and trading of digital assets under French law, marking a cautious yet strategic entry into the crypto market.While Hexarq focuses on retail services, BPCE's investment banking division, Natixis, is advancing blockchain initiatives, including a €100 million bond issuance. The bank emphasizes that the 2025 launch is contingent on ongoing risk assessments.
The Parliamentary Commission of Inquiry's report highlights inadequate management and insufficient regulatory oversight as key issues leading to Credit Suisse's troubles, emphasizing that the root cause was a lack of confidence in its leadership rather than systemic failure. It calls for effective cooperation among financial authorities and warns against overregulation, stressing the importance of maintaining a competitive banking environment for Switzerland's economy. The report also points out unequal treatment between Credit Suisse and UBS regarding regulatory measures.
Investors who put €10,000 into Raiffeisen shares a decade ago would now hold 841.751 shares, valued at €16,489.90, reflecting a 64.90% increase from the initial investment. The share price was €11.88 ten years ago and is currently €19.59, with Raiffeisen's market capitalization reaching €6.43 billion.
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