Cheater-Schreck Minder wants to reject pledging credit

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For years, too many Credit Suisse shareholders have watched the behavior of the executive floor, with bonuses and compensation being handed out in the billions. Now comes the bonus: in the course of the acquisition by UBS, the CS owners will still get the equivalent of 76 centimes per share. No wonder, as many will be speaking loudly at the CS General Assembly in Zurich on Tuesday.

Non-party alderman Thomas Minder (62, SH) is among the minority of CS shareholders who have warned in vain. He will also participate in the General Assembly, he confirms to Blick. “But I’m not sure I’ll say anything yet.”

No federal money for UBS

In any case, he has already said a few things beforehand. As soon as the deal orchestrated by the federal government became known, his collar burst. “A bank should be allowed to fail – just like any other company,” he told Blick at the time. “Saving CS with tax money sends the wrong signal.”

Now he wants to follow suit in parliament when the National Council and the Council of States decide on the CHF 109 billion pledging credits. 100 billion is provided as a standard guarantee in favor of the National Bank (SNB) for further liquidity support loans to Credit Suisse. And 9 billion francs as possible loss protection for UBS.

The two credits will be discussed at Parliament’s extraordinary session next week. It is already clear to Minder that he will ask the Council of States to reject the CHF 9 billion item. “The SNB is responsible for liquidity and not the federal government,” he explains. “UBS is doing well and has made over $7 billion in profit, it doesn’t need that $9 billion guarantee from the federal government.”

UBS already got the CS for a bargain price, Minder complains. “The fact that the federal government wants to give UBS such an important helping hand is totally wrong.” Less leaves open whether he also wants to reject the loan of 100 billion. “I’m still torn,” he says.

Less is angry about the emergency law

In fact, the parliamentarians can no longer shake off the agreement, as it would be pushed through by the Federal Council through an emergency law and urgently approved by the financial delegation of the two councils.

He also considers the deal, made possible by the emergency law, a scandal. “It would have been smarter to park the toxic CS papers at the National Bank for a while, as they did at UBS,” says Minder. “This would have had the advantage that the federal government and the SNB already know the procedure, no one is expropriated and CS could continue to exist.”

It’s too late for that. Minder also assumes that the municipalities will wave the money through. “Once again, Parliament will not have the courage to reject this emergency loan,” said Minder. “Even with Axpo and the 10 billion, Parliament didn’t have the courage to say no – gambling continues merrily, in the power exchange and in investment banking.”

Less doesn’t trust UBS-Ermotti

The father of the rip-off initiative is therefore trying to bring about corrections with new claims. In the special session, he will present a proposal calling for an autonomous spin-off of investment banking among all too-big-to-fail banks, aiming for a separate banking system.

“The danger that CS and UBS, with the double state support of the SNB and the federal government, will not split off and sell the extremely dangerous investment banking business is obvious,” explains Minder the need for political action. The Bundesrat has not imposed any corresponding conditions on UBS.

Minder does not believe that new UBS boss Sergio Ermotti (62) could work here on his own. Because high bonuses can only be achieved in investment banking. “Ermotti is a former investment banker,” Minder said. “He also has top priority to earn bonuses.”

More Swissness for Board of Directors

In another motion, the Council of States of Schaffhausen demands that more than half of the board members of a major systemically important bank must have Swiss nationality. “As was the case until about 2005,” says Minder.

And already in the spring session he submitted a proposal demanding that the federal government and the national bank no longer be able to save private financial institutions from bankruptcy through extraordinary special measures.

Source:Blick