The Swiss financial market supervisor was ineffective in its management of the Credit Suisse scandal, an entity that collapsed last year and had to be rescued by its direct rival, UBS, after mismanagement by its management team. This is the main conclusion of the eighteen-month investigation carried out by the Swiss parliament.
Despite this, the commission of inquiry claims to have found no evidence that the implosion of Credit Suisse was caused by mismanagement by the authorities. placing all responsibility on those responsible for the bank.
“The board of directors and senior management of Credit Suisse in recent years are responsible for the loss of confidence in the bank,” reads the note published by the commission.
It must be remembered that, before the bankruptcy, Credit Suisse was among the thirty banks in the world until then considered ‘too big’ and relevant in the global financial architecture to collapse.
However, following the collapse of three regional entities in the US last year, Credit Suisse shares fell 30% on March 15.
Then, fearful of a global banking crisis, the Swiss government bailed out Credit Suisse. According to the conclusions published today, with this decision the authorities “avoided a global financial crisis.”
From there, the commission points to the Swiss Financial Market Supervisory Authority for not having withdrawn the entity’s permission to operate in 2017. Despite this, as has already been said, the commission has not detected any type of misconduct. conduct on the part of supervisory authorities.
This investigative commission was created in 2023, precisely, to investigate the role of the Swiss authorities in the bank’s bankruptcy. It was made up of 14 deputies, with representation from all the major parties in the chamber. Its constitution was a rarity, since it must be remembered that Switzerland has only had five parliamentary committees of inquiry since 1995.
In this case, the commission reviewed the concatenation of events from 2015 onwards, trying to identify the factors that led to the bank’s bankruptcy, and examined more than 30,000 documents. Among other things, in its conclusions the commission criticizes the rules that apply to entities considered “too big to fail” and He believes that the Government and Parliament place “too much importance” on the requests of the large banks.
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