Capital increase, massive job cuts and CS First Boston comeback. Credit Suisse made a quarterly loss of more than CHF 4 billion and announced a major restructuring.
A capital increase totaling 4 billion francs should help – with a major investment from Saudi Arabia: the Saudi National Bank invested 1.5 billion, thereby securing 9.9 percent of the shares in CS. This makes it one of the largest shareholders of CS.
SP-Molina criticizes
That the CS is bringing an unjust state on board is poorly received by the left. “CS is a large company in a strategic economic area that should not be controlled by foreign states,” said SP National Councilor Fabian Molina (32, ZH). “The control of such companies by foreign states is a problem for democracy and security in Switzerland.”
He refers to a motion of the House of Representatives by Beat Rieder (59, US), member of the Central Council of States, calling for the introduction of investment controls. “Unfortunately, the Federal Council has so far postponed the motion and wants to implement it rather laxly,” Molina lamented. “I expect the Federal Council to consistently prevent companies of strategic importance from coming under foreign control.”
Rieder, on the other hand, first wants to examine the measures taken by the major bank. “Obviously, if CS is systemically important to Switzerland, each deployment needs to be analyzed in detail,” he says.
FDP Portmann takes it easy
FDP National councilor and bank director Hans-Peter Portmann (59) is calm about the Saudi participation. “An investment in the financial sector is not the same as in the real economy,” says the Zurich resident. “For example, when the Chinese invest in transport infrastructure, they do so for political and strategic reasons.”
In the case of CS it is very different. For the Saudis, it is purely a financial investment. “They see great earning potential in the next five to ten years. It’s not about politics.” Besides, it’s just a minority stake.
Portmann has a differentiated view of the involvement of an unjust state. Under this poster, one is no longer allowed to do business with many other states. “Think of the torture reports from Guantanamo, for example, we should stop trading with the US,” said the liberal. He emphasizes that he does not want to excuse human rights violations in any way.
culture change required
For Portmann, the question of whether CS can turn around is much more important than the Saudi participation. “A first step has been taken, but a fundamental culture shift is needed,” he says.
“As long as the calculation criterion of individual sales and earnings leads to salaries in the millions at the front, the problem culture will persist,” Portmann says. “More social skills at the top and good governance worldwide are needed.”