A 14-member parliamentary committee will launch its investigation into the collapse of Credit Suisse this week, Reuters I reported today (Tuesday). The investigation comes three months after Swiss lawmakers rejected the government’s CHF109 billion rescue package for rival lender UBS to take over troubled Credit Suisse.
In March, shares of Credit Suisse, Switzerland’s second largest bank at the time, sank to an all-time low, sending the already troubled banking giant into a tailspin. The event, which occurred in the aftermath of the recent banking crisis in the United States, forced the Swiss government to plan an emergency takeover of the lender by UBS. However, government intervention, which has largely bypassed parliament, sent Swiss lawmakers on the rise.
Last month, UBS finalized its acquisition of Credit Suisse, creating a banking giant with a balance sheet of $1.6 trillion and a workforce of 120,000. The Swiss government also backed the merger by guaranteeing a loss of $10 billion.
However, in early June the Swiss Parliament formally approved the creation of a commission to investigate the accident. Swiss lawmakers later handed the job to a multi-party team headed by Isabelle Chassot of the centrist Mitte party.
According to Reuters, the Commission will publish its research on actions taken by public authorities before and during the emergency takeover of Credit Suisse. It will also examine actions taken by the Swiss executive arm, the Swiss National Bank (SNB), the Federal Ministry of Finance and the Swiss Financial Market Supervisory Authority (FINMA).
finance poles
It reported that before UBS agreed to merge with Credit Suisse, the Swiss National Bank provided a credit facility of 50 billion Swiss francs (about $54 billion) to Credit Suisse to support the bank’s liquidity and maintain investor confidence. For its part, FINMA cut $17 billion in Additional First Class (AT1) notes from Credit Suisse, turbulent global financial markets.
With the investigation starting this week, the committee has the next year and a half to present its findings and make recommendations to the government and Parliament, Reuters mentioned.
Spotware names new CEO; XS.com welcomes Director of Marketing. Read snippets of today’s news.
A 14-member parliamentary committee will launch its investigation into the collapse of Credit Suisse this week, Reuters I reported today (Tuesday). The investigation comes three months after Swiss lawmakers rejected the government’s CHF109 billion rescue package for rival lender UBS to take over troubled Credit Suisse.
In March, shares of Credit Suisse, Switzerland’s second largest bank at the time, sank to an all-time low, sending the already troubled banking giant into a tailspin. The event, which occurred in the aftermath of the recent banking crisis in the United States, forced the Swiss government to plan an emergency takeover of the lender by UBS. However, government intervention, which has largely bypassed parliament, sent Swiss lawmakers on the rise.
Last month, UBS finalized its acquisition of Credit Suisse, creating a banking giant with a balance sheet of $1.6 trillion and a workforce of 120,000. The Swiss government also backed the merger by guaranteeing a loss of $10 billion.
However, in early June the Swiss Parliament formally approved the creation of a commission to investigate the accident. Swiss lawmakers later handed the job to a multi-party team headed by Isabelle Chassot of the centrist Mitte party.
According to Reuters, the commission will publish its research on actions taken by public authorities before and during the emergency takeover of Credit Suisse. It will also examine actions taken by the Swiss executive arm, the Swiss National Bank (SNB), the Federal Ministry of Finance and the Swiss Financial Market Supervisory Authority (FINMA).
finance poles
It reported that before UBS agreed to merge with Credit Suisse, the Swiss National Bank provided a credit facility of 50 billion Swiss francs (about $54 billion) to Credit Suisse to support the bank’s liquidity and maintain investor confidence. For its part, FINMA cut $17 billion in Additional First Class (AT1) notes from Credit Suisse, turbulent global financial markets.
With the investigation starting this week, the committee has the next year and a half to present its findings and make recommendations to the government and Parliament, Reuters mentioned.
Spotware names new CEO; XS.com welcomes Director of Marketing. Read snippets of today’s news.
