A 14-member parliamentary committee will begin its investigation into the Credit Suisse collapse this week, Reuters reported today (Tuesday). The investigation comes three months after Swiss lawmakers rejected the government’s 109 billion franc bailout for rival lender UBS to take over struggling Credit Suisse.
In March, shares of Credit Suisse, Switzerland’s second-largest lender at the time, fell to an all-time low, sending the already struggling banking giant crashing. The event, which occurred in the wake of the recent banking crisis in the United States, forced the Swiss government to stage an emergency takeover of the lender by UBS. However, government intervention, which largely bypassed parliament, pushed Swiss lawmakers into the wall.
Last month, UBS completed 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 with a loss guarantee of $10 billion.
However, in early June, the Swiss Parliament officially agreed to set up a commission to investigate the accident. Swiss lawmakers then handed the task to a cross-party team led by Isabelle Chassot of the centrist Mitte party.
According to Reuters, the commission will focus its research on the measures taken by public authorities before and during the emergency acquisition of Credit Suisse. It will also examine the measures 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 tycoons
reported that before UBS agreed to merge with Credit Suisse, the SNB provided a 50 billion franc (about $54 billion) credit facility to Credit Suisse to support the bank’s liquidity and preserve investor confidence. For its part, FINMA wrote down an additional $17 billion of Credit Suisse Tier 1 (AT1) bonds, throwing global financial markets into turmoil.
With the investigation due to begin this week, the Commission has a year and a half to deliver its findings and make 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 committee will begin its investigation into the Credit Suisse collapse this week, Reuters reported today (Tuesday). The investigation comes three months after Swiss lawmakers rejected the government’s 109 billion franc bailout for rival lender UBS to take over struggling Credit Suisse.
In March, shares of Credit Suisse, Switzerland’s second-largest lender at the time, fell to an all-time low, sending the already struggling banking giant crashing. The event, which occurred in the wake of the recent banking crisis in the United States, forced the Swiss government to stage an emergency takeover of the lender by UBS. However, government intervention, which largely bypassed parliament, pushed Swiss lawmakers into the wall.
Last month, UBS completed 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 with a loss guarantee of $10 billion.
However, in early June, the Swiss Parliament officially agreed to set up a commission to investigate the accident. Swiss lawmakers then handed the task to a cross-party team led by Isabelle Chassot of the centrist Mitte party.
According to Reuters, the commission will focus its research on the measures taken by public authorities before and during the emergency acquisition of Credit Suisse. It will also examine the measures 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 tycoons
reported that before UBS agreed to merge with Credit Suisse, the SNB provided a 50 billion franc (about $54 billion) credit facility to Credit Suisse to support the bank’s liquidity and preserve investor confidence. For its part, FINMA wrote down an additional $17 billion of Credit Suisse Tier 1 (AT1) bonds, throwing global financial markets into turmoil.
With the investigation due to begin this week, the Commission has a year and a half to deliver its findings and make recommendations to the government and parliament, Reuters reported.
Spotware Appoints New CEO; XS.com welcomes Marketing Manager; read today’s news nuggets.
