The Parliamentary Commission of Inquiry (CEP) into the management of the Credit Suisse debacle published its conclusions on Friday morning. And, in addition to the responsibility of the board of directors and management of Switzerland’s second largest bank, the report points out the lack of efficiency demonstrated by the Federal Financial Market Supervisory Authority (FINMA) in prevent disaster. An observation that quickly caused the Swiss political world to react.
On the side of the PLR, for example, the criticisms are raining down. “Given the culture and questionable behavior of Credit Suisse management, we could have expected FINMA to make full use of its supervisory instruments,” he denounces in particular. The party therefore hopes that the authority will be strengthened in the future, “not as a regulator, but in the systematic application of existing supervisory instruments”.
The Center, too, hopes for “an improvement in the effectiveness of FINMA”. But he mentions more radical solutions, such as “making FINMA’s interventions more restrictive”. The party is also in favor of “a stronger involvement of the role of the SNB in guaranteeing the stability of the financial center” or even a strengthening of capital requirements.
And, for once, the Greens share this desire. Perhaps even more intensely: “We need a Lex UBS: stricter rules for the management of the company, compensation for the implicit guarantee of the State and solid equity capital commensurate with the risks that the mega-bank represents for Switzerland.” For the latter, “Credit Suisse knew that FINMA did not have the political support necessary to intervene successfully”. It is therefore essential to strengthen the action strength of the institution.
Unsurprisingly, the PS thinks the same. The socialists also believe that we must act quickly to adapt and tighten the law on “too big to fail”. And, a new point in common between the left and the Center, they are calling for a ban on bonuses for the bosses of systemically important banks.
The CF is counting on a tougher law
The Federal Council, too, reacted to the conclusions of the report published Friday. The opportunity to “welcome that the CEP welcomes not only the action of the authorities during the Credit Suisse crisis but also the solution adopted, namely the acquisition of the bank by UBS”. The Seven Sages further affirmed that they shared the opinion of the CEP that the “too big to fail” legislation in force was not sufficient. The work of the commission will therefore be included in the ongoing review of these regulations.
