A 14-member
parliamentary commission will begin its investigation into the collapse of
Credit Suisse this week, Reuters reported today (Tuesday). The probe comes
three months after Swiss lawmakers rejected the government’s CHF 109 billion rescue package for rival lender UBS to take over troubled Credit Suisse.
In March, the shares of
Credit Suisse, Switzerland’s second-largest lender
at the time,
plummeted to an all-time low, resulting in the collapse of the already-troubled banking giant. The event, which happened in the wake of the recent banking crisis in the United States, forced the Swiss government to
engineer an emergency takeover of the lender by UBS.
However, the government intervention, which majorly bypassed the parliament, drove Swiss lawmakers
up the wall.
Last month, UBS finalized its acquisition of Credit Suisse, creating a banking
behemoth with a balance sheet of $1.6 trillion
and a workforce of 120,000. The Swiss government also backed the merger with a $10 billion loss guarantee.
However, the Swiss
Parliament in early June formally agreed to
create a commission to probe the crash. Swiss
lawmakers
later handed the duty to a multi-party team headed by Isabelle Chassot from the
centrist Mitte party.
According to Reuters,
the commission will beam its search on measures taken by
public authorities before and during the emergency acquisition of Credit
Suisse. It will also scrutinize the actions taken by the Swiss executive arm,
the Swiss National Bank (SNB), the Federal Department of Finance and the Swiss
Financial Market Supervisory Authority (FINMA).
Finance Magnates
reported that before UBS agreed to merge with Credit Suisse, SNB provided a CHF 50 billion (about $54 billion) credit facility to Credit Suisse to support the bank’s liquidity and preserve
investor confidence. On its part, FINMA wrote down $17 billion in Credit Suisse’s additional tier one (AT1) bonds, sending
global financial markets into turmoil.
With the investigation due to start this week, the Commission has the next one and a half years to make its finding and
put forward recommendations
to the government and parliament, Reuters reported.
Spotware appoints new CEO; XS.com welcomes Marketing Manager; read today’s news nuggets.
A 14-member
parliamentary commission will begin its investigation into the collapse of
Credit Suisse this week, Reuters reported today (Tuesday). The probe comes
three months after Swiss lawmakers rejected the government’s CHF 109 billion rescue package for rival lender UBS to take over troubled Credit Suisse.
In March, the shares of
Credit Suisse, Switzerland’s second-largest lender
at the time,
plummeted to an all-time low, resulting in the collapse of the already-troubled banking giant. The event, which happened in the wake of the recent banking crisis in the United States, forced the Swiss government to
engineer an emergency takeover of the lender by UBS.
However, the government intervention, which majorly bypassed the parliament, drove Swiss lawmakers
up the wall.
Last month, UBS finalized its acquisition of Credit Suisse, creating a banking
behemoth with a balance sheet of $1.6 trillion
and a workforce of 120,000. The Swiss government also backed the merger with a $10 billion loss guarantee.
However, the Swiss
Parliament in early June formally agreed to
create a commission to probe the crash. Swiss
lawmakers
later handed the duty to a multi-party team headed by Isabelle Chassot from the
centrist Mitte party.
According to Reuters,
the commission will beam its search on measures taken by
public authorities before and during the emergency acquisition of Credit
Suisse. It will also scrutinize the actions taken by the Swiss executive arm,
the Swiss National Bank (SNB), the Federal Department of Finance and the Swiss
Financial Market Supervisory Authority (FINMA).
Finance Magnates
reported that before UBS agreed to merge with Credit Suisse, SNB provided a CHF 50 billion (about $54 billion) credit facility to Credit Suisse to support the bank’s liquidity and preserve
investor confidence. On its part, FINMA wrote down $17 billion in Credit Suisse’s additional tier one (AT1) bonds, sending
global financial markets into turmoil.
With the investigation due to start this week, the Commission has the next one and a half years to make its finding and
put forward recommendations
to the government and parliament, Reuters reported.
Spotware appoints new CEO; XS.com welcomes Marketing Manager; read today’s news nuggets.
