Categories: Politics

That’s why bonuses have to keep flowing at CS

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UBS and the federal government bailed out Credit Suisse on Sunday.

Despite billions in support for the acquisition of Credit Suisse by UBS, the Federal Council does not want to impose any restrictions on the payment of bonuses. The SNB’s liquidity support to Credit Suisse is not a state bailout, but a private takeover, Finance Minister Karin Keller-Sutter (59) stated at the media conference last night. However, it was mainly representatives of the state who participated – and only two bankers.

The banking law provides for the prevention of bonuses in such situations. It states that if a systemically important bank were to receive direct or indirect support from federal funds, the Bundesrat could order remuneration measures. And thus prohibit the payment of bonuses.

However, bonuses for CS bankers remain possible. The “Tages-Anzeiger” had calculated from the annual reports that CS had made a cumulative loss of CHF 3.2 billion since 2013, but that top managers pocketed CHF 32 billion in bonuses during the same period.

Source:Blick

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