{ }
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.
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.
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.
Finance Minister Karin Keller-Sutter's crisis management during the Credit Suisse debacle has been praised for preventing an international financial crisis, while her predecessor, Ueli Maurer, faced criticism for inaction. The FDP calls for earlier intervention from the Swiss Financial Market Supervisory Authority (Finma) and emphasizes the need for systematic application of existing supervisory tools rather than indiscriminate capital increases for systemically important banks.
The Federal Council agrees with the PUK report's assessment that the too-big-to-fail regulation has significant weaknesses. It plans to integrate the Commission's findings into the upcoming enhancements for regulations governing systemically important banks. Additionally, the Council expressed satisfaction with the authorities' actions during the CS crisis and the resolution achieved through UBS's takeover.
Bern business law professor Peter V. Kunz has sharply criticized the PUK report on the Credit Suisse bailout, deeming its nearly 600 pages "useless and pointless." He argues that the report fails to hold authorities accountable, particularly the Swiss Financial Market Supervisory Authority (Finma), which he claims allowed mismanagement to persist. Kunz believes the report's recommendations lack pressure on politicians and suggests that the PUK's efforts were ultimately a waste of time.
The PUK report reveals that Credit Suisse's crisis was self-inflicted due to years of mismanagement and scandals, exacerbated by relaxed capital requirements and insufficient regulatory oversight. Despite warning signals, authorities failed to act decisively, leading to a lack of transparency and inadequate crisis detection. The report calls for urgent reforms in banking legislation and supervision to prevent future failures, emphasizing the need for a robust regulatory framework as Switzerland is left with only one globally significant bank.
The Swiss Bankers Association (SBA) emphasizes the need for intelligent regulation following the Credit Suisse crisis, highlighting responsible management, effective supervision, and reliable liquidity as key factors for financial stability. CEO Roman Studer notes that the crisis stemmed from mismanagement and calls for targeted reforms, enhanced cooperation among authorities, and a strengthened liquidity framework. The SBA plans to analyze the CEP report further to engage in the upcoming political and regulatory discussions on bank stability.
The Parliamentary Commission of Inquiry (PUK) has criticized the management and Board of Directors of Credit Suisse for its downfall, highlighting failures in regulatory oversight and crisis detection. However, the report offers vague insights regarding UBS, emphasizing the need for appropriate regulatory considerations due to its size as the only remaining Global Systemically Important Bank in Switzerland. The PUK's lack of clarity on UBS represents a missed opportunity, leaving Parliament and the Federal Council to determine future actions and reforms.
The Federal Council affirms its actions during the Credit Suisse crisis, welcoming the Parliamentary Commission of Inquiry's positive assessment of the UBS takeover. The report highlights weaknesses in too-big-to-fail regulations and supports FINMA's call for expanded supervisory powers, including enhanced communication and earlier intervention capabilities.
Trending
Subcategory:
Countries:
Companies:
Currencies:
People:

MachinaCore is a highly modular and scalable system that allows users to build custom widgets and tools tailored to their specific financial data needs, while seamlessly integrating with other MachinaLabs products, like Machinary, MachinaAI Modules and MachinaTrader.

Address

Waitlist

We’re granting exclusive early access to the first 500 users from december 20.

© 2024 by Machinary.com - Version: 1.0.0.0. All rights reserved

Layout

Color mode

Theme mode

Layout settings

Seems like the connection with the server has been lost. It can be due to poor or broken network. Please hang on while we're trying to reconnect...
Oh snap! Failed to reconnect with the server. This is typically caused by a longer network outage, or if the server has been taken down. You can try to reconnect, but if that does not work, you need to reload the page.
Oh man! The server rejected the attempt to reconnect. The only option now is to reload the page, but be prepared that it won't work, since this is typically caused by a failure on the server.