Swiss lawmakers are tearing apart Credit Suisse’s woes ahead of the deal
GENEVA (AP) – Switzerland’s parliament opens a special session on Tuesday to consider the state-mandated takeover of Swiss bank Credit Suisse by rival UBS – and may consider strengthening the legal arsenal to better guard against financial explosions.
Swiss authorities intervened as shares in Credit Suisse and other banks tumbled last month after the collapse of two US banks sparked concerns about other potentially shaky institutions in the global financial system. Credit Suisse is among 30 financial institutions known as global systemically important banks, and authorities are concerned about the consequences of a failure.
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Despite the talk, few concrete outcomes were expected from the session, which are primarily expected to flesh out ideas – and possibly some vitriol – from lawmakers, all of whom are subject to re-election this fall.
Switzerland’s attorney general’s office launched an investigation into what was going on at Credit Suisse before the takeover, and last week the executive ordered tens of millions of dollars in cuts in bonuses for top Credit Suisse executives.
Legislature was widely expected to back the bailout plan – albeit reluctantly for some lawmakers – and was not yet expected to launch a parliamentary inquiry into the epochal bailout of Credit Suisse, a 167-year-old pillar of Swiss banking , would approve.
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