“The risk is absolutely unacceptable”

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What’s next for the new Superbank? Aymo Brunetti, an economist at the University of Bern, is worried: “If UBS ever falls, it will fall on the toes of Swiss taxpayers and potentially a huge sum. This is unacceptable to me,” Brunetti said of the “Frankfurter Allgemeine Zeitung” published Thursday evening. FAZ) in an interview with the online edition.

If the new UBS doesn’t openly go bankrupt, it will be huge for Switzerland. Your balance sheet total will be approximately twice the Confederation’s gross domestic product. “Our small country cannot afford a government-guaranteed UBS. The risk is absolutely unacceptable,” Brunetti warned.

And also: “UBS could potentially get caught in extensive shackles as part of a popular initiative if politicians avoid measures under pressure from the bank.” There is great discontent among the public, and among the parties on the left and right, about the “public billions of aid to the scandalous bank Credit Suisse”.

In any case, Brunetti warned, UBS should not be declared “indispensable for false national pride”. As such, relocation of headquarters should not become a taboo.

Would there really be a financial crisis?

The decisive question is whether UBS’s state-sponsored emergency solution is as irreplaceable as the Federal Council and the National Bank claim, Brunetti continued. However, this can only be answered after the case has been analyzed in detail.

“Scenarios of a global financial crisis can easily be imagined, but I am not 100 percent convinced yet that it will happen,” Brunetti said.

The economist has left almost no good hair on Swiss politics. As the financial crisis became a thing of the past, they looked at the big banks more lightly. Instead of empowering the financial market supervisor (Finma), it was attacked. “This needs to be worked on and as quickly as possible,” Brunetti demanded. (SDA)

Source :Blick