Keller-Sutter visits godfather Zeus: ‘Easier to tame than some politicians’

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“Yes, that’s a sweetheart!” When she holds the little Saint Bernard puppy in her hands, Karin Keller-Sutter (59) cannot contain her joy. The federal councilor traveled to the Barry Foundation in Martigny USA to visit her sponsor dog Zeus. There is also a small detour with the seven puppies born two weeks ago

Zeus is waiting outside in the kennel. When his famous god arrives, he happily jumps towards her with his 77 kilos. Keller-Sutter pets the four-year-old male St. Bernard. “If Zeus really pulls the leash, you can’t do anything,” she says, adding, “Still easier to tame than some politicians.” And probably some bankers too. While walking with Zeus in Plan-Cerisier, in the middle of the vineyards, Karin-Keller Sutter looks back on the first eight months as Minister of Finance.

After UBS, Swiss and now Credit Suisse: which company will actually be saved next?
Karin Keller Sutter: We didn’t save CS. The Federal Council, the Financial Supervisory Authority and the Swiss National Bank have done everything they can to prevent damage to Switzerland. If CS had gone bankrupt, it would have caused enormous damage, the payment system could have collapsed and many people would have been unable to access their accounts. The CS was systemically important. These also include other companies such as the energy company Axpo. The federal government had to provide a protective shield there.

What should the butcher or the architect think?
You just bankrupted them. I understand people’s anger well. I grew up in a commercial company myself and no one would have made it. But it wasn’t just my parents who had a restaurant, there are many restaurants. So just one is not systemically relevant. I was also very angry that the management of this bank, with its mismanagement and scandals, had put Switzerland in this position.

There was no alternative to the forced sale of CS to UBS. This is recorded by a group of experts appointed by you.
The Federal Council never said that the CS could not be dissolved. But that wouldn’t have happened without significant damage to the financial center and the national economy. No one in the world has ever liquidated a systemically important bank. It would have been a complete experiment. The Federal Council could not take such a big risk. Fortunately, we had a better solution because another bank was willing to take on the financial and legal risks.

It is said that your predecessor Ueli Maurer missed the CS save. But the Federal Council is a collegial authority. Have you never asked?
The Federal Council is not responsible for the supervision of banks. That is the task of the financial supervisor. Above all: the responsibility for the bank lay with the CS bosses. Just blaming my predecessor is a bit too easy. You can always argue that things were better last fall or last summer. The Parliamentary Commission of Inquiry must now provide clarity about this.

You said you didn’t sleep much then. What does it look like now that we have this new monster bank?
It doesn’t give me any sleepless nights. It is now a matter of positioning ourselves so that this does not happen again. Crises don’t follow the rules of the game. Now everyone is talking about UBS. Who can guarantee that this will not happen at another bank? We are working on suggestions. In the spring, the Federal Council will outline in a report where the gaps need to be closed.

3,000 people in Switzerland will lose their jobs. Experts talk about salami tactics. Saying there’s more to come.
The Federal Council has commented on this. My colleague, Minister of Economy Guy Parmelin, has expressed his regret. On the other hand, we have to see that if CS had gone bankrupt, many more jobs would probably have been lost.

The “NZZ am Sonntag” expects that a total of 27,000 jobs will disappear. Especially abroad. Our reputation suffers.
In my opinion, Switzerland’s reputation has not suffered. We have achieved stability within a short time. We could perform. This was very internationally recognized and there was great relief.

Everyone is now enthusiastic about Sergio Ermotti. You too?
He is certainly very experienced. UBS brought him back after the takeover. Especially because he restructured UBS at the time.

Do you have confidence in him?
I now have confidence in this leadership. But we have to think about the time afterwards. At some point there will be a replacement of these management personnel. I assume that the dialogue will now continue. That this is also in the interest of UBS management and that they continue to engage in discussions with politicians.

Sergio Ermotti says he doesn’t want politics to interfere now. How does that resonate with you?
On the one hand, UBS is a private company. However, banks are among the most heavily regulated sectors. The discussions about what this should look like in the future have only just begun. It is the task of politicians to discuss these rules and adjust them if necessary.

How many times have you met Sergio Ermotti?
A few times before the summer holidays, when negotiating the guarantee for the assets acquired by CS. There were negotiating teams from the finance department and UBS. If there were any differences, these were discussed between the Chairman of the Board, Colm Kelleher, and myself. Ermotti was partly there too.

Bonuses are a constant annoyance at banks. That has not yet been arranged either. I can’t anticipate that. That will be the subject of next spring’s report.

It is not only UBS that poses a cluster risk. Cantonal banks can also become expensive for taxpayers.
Yes, we saw that, for example, when the Solothurner Kantonalbank went bankrupt. The cantonal banks provide good dividends, but if something happens, a community can suffer losses. Banking is full of risks.

As Minister of Finance, you must save two billion francs. Is this really the right time, now that everything is becoming more and more expensive?
We have the debt brake in the Constitution. This obliges the federal government to present a balanced budget. 85 percent of voters approved the debt brake, which has been in place for 20 years. Not spending more than you earn is part of our Swiss mentality. But Parliament has now approved the spending without saying how it will be financed. That is why we now have this adjustment requirement of two billion francs.

When the federal government saves, benefits are reduced. That affects the population.
The population does not feel this. There are a lot of cuts that no one notices. For example, almost 800 million was budgeted for the Horizon research program. But now we are not with Horizon, so that is currently no longer possible. However, safety measures are planned for research and no money should be withdrawn from it. We’re not even really saving, we’re just slowing the growth of spending. But it is also clear that we do not want tax increases. That would not be in the interest of the population. So the debt brake helps us. Thanks to her, we have money when we really need it – like during the Corona period.

Switzerland still has deep debts.
Yes, it goes deep, but abroad is not a role model when it comes to debt. The finance ministers of other countries are jealous of us.

Do you regret switching departments?
It was a turbulent and intense start. But I don’t regret it. I am in the Federal Council because I want to take my responsibility and help shape it. I really appreciate the work at the university. Especially now that we’ve all worked very closely together throughout this entire budget discussion.

However, important problems in the Federal Council have not yet been resolved: EU, neutrality. Where do we actually want to go?
There have been many crises in recent years. Announcing his resignation, Chancellor Walter Thurnherr said this would be the worst term since World War II. The Federal Council has not chosen this. Neither Corona, nor the war in Ukraine, nor the energy crisis. It is clear that we were always in crisis mode. And of course we have discussions, that’s part of it. Sometimes you read about the kind of fight we would get into. But that’s just not true! Everyone always says they want a strong Federal Council. But that’s actually not true at all. In Switzerland, people are concerned about the balance of power. That’s a good thing.

What is your vision for Switzerland?
We have many strengths: the liberal economic system, the personal responsibility of citizens, a good level of education. The healthcare system is also good, although adjustments are needed. I think you can be a little grateful for all this. We have problems with reforms, that’s true. But uniting itself has always been a strength of Switzerland.

How were the two new members received on the teaching staff?
They are very well integrated. This works perfectly for them.

As far as the elections are concerned, it is striking that the federal councilors are allowing themselves to be pushed by the parties. According to the regulations, restraint would be appropriate.
This also includes the fact that federal councilors participate in a national party meeting. But the election campaign is a matter for the parties. There should be no party politics in the Federal Council. We must do what we know is right and not follow an ideology. I believe that the Federal Council is one of the last bodies that does not function according to party politics. This sometimes irritates people because they prefer different results. But actually this is a blessing for Switzerland.

Source:Blick