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“Is my savings still safe with CS?” Or: “CS is our commercial bank, and I have a bad feeling about it. Do you want me to do something?” Or: “Does the 100,000 francs deposit protection only apply to my savings account or also to the 3a account?” I had a standard answer to all these questions that somehow ended up in my mailbox: “I don’t know.”
Of course, I could refer to deposit insurance. In the event of a bank failure, customer deposits up to CHF 100,000 are protected against loss. This security is regulated by law. But the reader has 100,000 francs in both UBS and CS. He asked me: “Are both accounts protected after the takeover, or is it just 100,000 francs in my name?”
Here too the answer is “I don’t know”. Because what do we know? Finally, we were also convinced that Swiss business could be saved by the Too Big to Fail Large Banks Act if foreign companies actively speculated.
Treasury Secretary Karin Keller-Sutter also explained to us that the emergency law deal was a bailout for the private sector. I’m sorry, what? Quoting Serge Gaillard. He was director of the Federal Financial Office in Bern until early 2021. In “NZZ am Sonntag” he said: “The state has taken on a risk of nine billion francs. This is not a private sector decision.”
By the way, Serge Gaillard made it clear that he regrets that the contingency plan was not applied in accordance with the rules of a large bank. So we didn’t know if it would work. Now it is necessary to find out why the other path was chosen.
So again: why did UBS need to be rescued 15 years ago? Because otherwise systemically important areas, such as payment transactions or the credit business, and therefore the Swiss economy, would collapse as a whole. At least that was the official reason. That’s why politicians have taken precautions with Too Big to Fail to be able to save systemically important areas if necessary. At least that’s what we were told.
But why did CS need to be bailed out of bankruptcy now? Save the backbone regions of Switzerland and prevent the collapse of the Swiss economy? No. This time, the official reason is that otherwise there would have been an international financial crisis. This is true? After all, Keller-Souter also said the deal was a private bailout.
And anyway, why didn’t the US bail out Lehman Brothers 15 years ago to prevent the global financial crisis?
Source: Blick
I am David Miller, a highly experienced news reporter and author for 24 Instant News. I specialize in opinion pieces and have written extensively on current events, politics, social issues, and more. My writing has been featured in major publications such as The New York Times, The Guardian, and BBC News. I strive to be fair-minded while also producing thought-provoking content that encourages readers to engage with the topics I discuss.
