CS’s downfall damaged Switzerland’s financial center and the country’s image: UBS boss Ermotti calls for tougher sanctions against negligent bankers

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Following the collapse of Credit Suisse (CS), UBS boss Sergio Ermotti (63) called for greater powers to be given to the Swiss financial market regulator (Finma) and tougher measures against negligent bankers.

Following UBS’s takeover of CS in March, Ermotti spoke in favor of tighter regulations. He also wants to see personal responsibility strengthened in the banking sector. Bankers who act with gross negligence should not evade responsibility.

“It should be easier for the bank or the supervisory authority to take action against people who grossly negligently violate their duties,” Ermotti said in a speech at the University of Zurich on Wednesday evening.

A shame for Switzerland’s financial center and the country’s image

Ermotti described CS’s decline after more than a decade of scandals and losses as a “slow, painful decline.” The UBS boss spoke of a “dramatic end” for CS and said it was “a shame for the Swiss financial center and the image of Switzerland in general”.

Key players ignored warning signals

He said repeated mistakes in risk management and operational work had undermined the credibility of the bank’s management and board, the Financial Times quoted him as saying.

“Ineffective management,” in turn, “led to excessive turnover in key board and management positions, further weakening individual accountability throughout the company.”

“Many key players neglected, or worse, ignored, warning signs,” Ermotti said.

Source :Blick