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Now politicians want to act: today, Thursday, an extraordinary meeting of the Federal Council on Credit Suisse will take place, reports the “Tages-Anzeiger”.
Center National councilor Philipp Matthias Bregy (44) is also concerned. The group leader is uncomfortably reminded of the financial crisis of 2008 and 2009, when the federal government had to rescue the major bank UBS from the abyss with a cash injection.
Now it is Credit Suisse (CS) that is beginning to falter. On Wednesday, CS shares fell at times as much as 30 percent in trading and had reached an all-time low of 1.55 francs. The Swiss National Bank (SNB) has already intervened to prevent the worst. It is lending CS up to CHF 50 billion so that it can stabilize again.
Possible impact on interest rate policy
But is that enough? There is great uncertainty in the financial markets. Middle group leader Bregy is already seeing signs of another financial storm that could spark a review. That’s why Wallis turns to the state government. He wants to know from the Federal Council how it assesses the stability of the Swiss banking sector after the collapse of the US Silicon Valley Bank, which caused the latest turbulence.
After all, the latest banking crisis also complicates international interest rate policy, Bregy emphasizes in the interpellation just submitted. If interest rates are raised too much, this could lead to further unrest in the financial markets and a recession. On the other hand, if you leave interest rates at a “low” level, you will not get inflation under control.
Would the Bundesrat also be prepared to provide assistance?
Philipp Matthias Bregy therefore wants to know whether the Federal Council would be prepared to take state rescue measures for a financial institution in order to guarantee the liquidity and thus the stability of the Swiss economy. In other words, is the Bundesrat prepared to make billions of francs available to Credit Suisse if necessary? After all, it is about coping with a growing financial crisis.
In any case, there is a glimmer of light on the horizon: the CS share was already trading at significantly higher prices on Thursday morning before the start of the trading session. The news that the ailing major bank can borrow up to 50 billion francs from the National Bank has calmed the mood after the share crash on Wednesday.
Source:Blick
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