Baume-Schneider defends the emergency law

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Justice Minister Elisabeth Baume-Schneider (59) has defended the Federal Council’s grip on the emergency law for the stabilization and takeover of the ailing major bank Credit Suisse (CS) by UBS. Suddenly time was of the essence to avert bankruptcy, she said on the SRF radio program “Tagessprach” on Tuesday.

The government had acted legally correctly, the conditions for application of the emergency law had been met. “It must be an emergency,” said Baume-Schneider. “It was the best solution.” Bankruptcy of the systemically important CS was not an option.

CS rescue was not partisan politics

The decision had nothing to do with party politics, but with responsibility for Switzerland and abroad, the federal councilor continued. A collapse of CS “would have been a catastrophe at home and abroad”.

In particular, Baume-Schneider defended the infringement of shareholder rights. In principle, there is always a risk for shareholders. “Had there been a bankruptcy, shareholders would be in an even more difficult situation,” the Federal Council said.

No time for shareholder rights

The Bundesrat suspended the rights of bank shareholders via the emergency law for the short-term acquisition of CS by UBS last weekend. Normally, the owners of CS and UBS should have decided on the merger at an extraordinary general meeting.

Now a political review is needed, the justice minister said. It has become apparent that even a large security arrangement is pointless if there is a lack of confidence among bank customers. “Then it gets difficult.” It should now be discussed what the newly created UBS means for the country as an even bigger bank. (SDA/sq)

Source:Blick