A parliamentary commission has criticized Credit Suisse executives for the bank's collapse, while also highlighting the Swiss financial regulator's ineffectiveness in preventing the crisis. The report, which spans 500 pages, attributes the downfall to management failures and calls for enhanced supervisory powers, including the ability to impose fines. Despite acknowledging shortcomings, it found no wrongdoing by Swiss authorities, who acted to avert a broader financial crisis.
The Parliamentary Commission of Inquiry (CEP) concluded that the collapse of Credit Suisse was primarily due to the bank's management failures, including a lack of cooperation with regulatory authorities and poor risk management. Despite significant profits, the board's reluctance to heed warnings from the Swiss Financial Market Supervisory Authority (Finma) contributed to the erosion of investor confidence. The CEP also criticized Finma for granting regulatory relief that masked the bank's true capital situation, suggesting that systemic banks should no longer receive such leniency.
Swiss lawmakers have criticized the years of mismanagement at Credit Suisse, attributing its collapse to inadequate oversight by financial regulator Finma, which granted the bank capital relief that obscured its true financial condition. The Parliamentary Commission of Inquiry's report highlights the failures of both the bank's leadership and regulatory bodies, calling for stronger supervisory measures to prevent future crises.
The PUK report reveals significant failings among Swiss authorities in managing the Credit Suisse crisis, highlighting a lack of coordination, mistrust, and delayed action that contributed to the bank's downfall. Despite portraying a successful rescue, the report exposes the inadequacies of FINMA, the SNB, and the Federal Council in crisis management and regulatory oversight. The findings underscore the need for accountability and reform to prevent future banking failures.
The business community has welcomed the conclusions of the Parliamentary Commission of Inquiry into the Credit Suisse collapse, which holds former directors accountable and calls for enhanced regulatory measures. The Swiss Financial Market Supervisory Authority (Finma) is criticized for not fully utilizing its powers, while recommendations include centralizing audit supervision and granting Finma greater enforcement capabilities. The Swiss National Bank acknowledges the report and emphasizes its commitment to strengthening financial regulation.
A parliamentary inquiry has concluded that Credit Suisse's management is primarily responsible for the bank's collapse, while the Swiss financial regulator, Finma, faced criticism for its ineffective oversight. The report highlights the bank's history of scandals and regulatory failures, recommending enhanced powers for Finma to prevent future crises.
The collapse of Credit Suisse, attributed to years of mismanagement, prompted a Swiss parliamentary inquiry that criticized both the bank's leadership and the supervisory authority, Finma. The findings may lead to stricter regulations for systemically important banks, potentially requiring UBS to reserve an additional $15 billion to $25 billion in capital.
A parliamentary commission of inquiry has found that Swiss authorities made significant errors leading to the collapse of Credit Suisse, attributing the loss of trust primarily to the bank's Board of Directors and Executive Board. The investigation revealed that the Financial Market Supervisory Authority (Finma) granted excessive capital relief and failed to act decisively, while the government was criticized for its lack of transparency. In response, the Swiss government plans to reform banking regulations, including stricter capital requirements, and has proposed 30 recommendations to prevent future crises.
UBS shares fell 0.4% to CHF 26.77, making it one of the SMI's losers, with a low of CHF 26.25 today. The stock is currently 9.47% below its 52-week high of CHF 29.57 and 15.84% above its low of CHF 22.53. In Q3 2024, UBS reported earnings per share of CHF 0.39, with sales of CHF 18.86 billion, a slight decline from the previous year.
Credit Suisse, a traditional Swiss bank established in 1856 by Alfred Escher, faced a significant crisis that culminated in its forced sale to UBS in March 2023. This event marked a dramatic decline for the institution, driven by a series of critical milestones leading to its downfall.
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