The parties draw these lessons from the CS debacle

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The collapse of Credit Suisse also shocked politicians. When the Bundesrat confirmed the acquisition of CS by UBS on Sunday evening, the reactions of politicians and parties were not long in coming. They almost outdo each other with demands.

These are also likely to be discussed at an extraordinary session in April. Almost all parties have already expressed their support for such a special session, which should take place in the week after Easter.

What led to the debacle from the point of view of the parties – and what needs to be done now:

The problem analysis: The SVP criticizes the “aggressive foreign strategy” that Credit Suisse has followed in the past – instead of focusing on doing business in Switzerland. The party accuses the Bundesrat of not applying the “too big to fail” rules under pressure from abroad. But it cannot be the case that the population, with billions of Swiss francs in national wealth, must answer for the mistakes of the CS leadership.

The teaching of the SVP: From the point of view of the SVP, the most important goal is that the debacle at CS does not become a debacle for the taxpayer. The responsible management had to be replaced and the foreign strategy had to be adjusted. There must be a minimum number of Swiss on the boards of directors of listed companies. This creates a certain obligation to the country.

The problem analysis: The SP speaks of a “culture of irresponsibility” that prevailed at Credit Suisse. According to the party, the catastrophe has arisen because politicians do not regulate the banking sector sufficiently.

The lessons of the SP: “No More Like This!” – This is the title of a petition launched by the SP on Monday. With this she wants to increase the pressure on parliament to draw conclusions from the CS crisis. The party is calling for a Parliamentary Commission of Inquiry (PUK) to investigate the events. In their view, for example, the introduction of a so-called separate banking system cannot be avoided. This means that commercial banks must be clearly separated from investment banks.

The problem analysis: The FDP also washes the head of the CS. She speaks of a “disgrace to Switzerland”. Since the 2008 financial crisis, the bank has not done its homework and management mistakes have been made. In addition, the liberals believe that the regulation of the financial markets does not work in practice.

The lessons of the FDP: The party first wants it to be clear who bears what responsibility for the debacle. The banking law would then have to be revised and, if necessary, amended. “The greed of individual bankers was greater than their responsibility,” FDP national councilor Beat Walti, 54, told the media. It must therefore be checked whether bonuses from previous years have to be repaid. The FDP is in favor of bankers not receiving any bonus payments this year. Freisinn also requires an extraordinary session.

The problem analysis: For the Greens, as for the SP, the dog is buried in the corporate culture of the banks. The past 15 years – since the financial crisis in 2008 – have also gone far too little politically. The “too big to fail” legislation has proved inappropriate.

The lessons of the Greens: The party wants to submit a proposal that takes a new approach to the separation of commercial and investment banks in Switzerland. During the extraordinary session, these and other demands for stricter banking regulation will be put on the table. With a petition, she also puts pressure on creating transparency about the conditions of the rescue loan and to link the provision of loans to sustainability requirements in the future.

The problem analysis: The center was still relatively diplomatic on Twitter. It is regretted that CS was not able to survive alone. The solution that has now been chosen poses a risk to the federal government. The center is particularly concerned that the acquisition of CS has created an even larger bank.

The teaching of the middle: As far as the lessons from the debacle are concerned, the middle ground is still relatively vague. You still need to review the current banking law. For example, low equity creates the wrong incentives, says the center. Investment banking abroad should finally be “critically questioned”. If necessary, the financial market regulator (Finma) should also be strengthened. And: “It is important to check whether those responsible at Credit Suisse can be held personally liable.”

The Problem analysis: The GLP also criticizes the “mismanagement” of the CS. But Finma, the National Bank and the Federal Council also share responsibility, from the point of view of the party, because they did not recognize the risks early enough. From a competition point of view, the takeover by UBS is questionable.

The GLP recipe: A PUK is for clarification. GLP also considers it essential to tighten up the “Too big to fail” law. Finma needs to be strengthened. “Today you can only impose conditions, but not sanctions,” says party chairman Jürg Grossen (53). “You also have to be able to impose fines, otherwise Finma will remain a toothless tiger.”

You can find all the news about the bank earthquake and its consequences in the ticker. (lha/sie/rus/dba)

Source:Blick

Livingstone

I am Liam Livingstone and I work in a news website. My main job is to write articles for the 24 Instant News. My specialty is covering politics and current affairs, which I’m passionate about. I have worked in this field for more than 5 years now and it’s been an amazing journey. With each passing day, my knowledge increases as well as my experience of the world we live in today.