The Council of States demands this from the federal government

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The extraordinary hearing on the acquisition of Credit Suisse by UBS started in Bern on Tuesday. In the first debate, the Council of States asked the Bundesrat to answer numerous questions about the loss of confidence in Credit Suisse and the subsequent rescue of the large bank by the state.

On Tuesday, the small chamber silently and unopposed approved a postulate from its Finance Commission (FK-S) with a list of questions. But before laws can be changed, an analysis is needed, said Commission President Johanna Gapany (34, FR) of the FDP.

The demands of the Council of States

“We are at the beginning of a long road,” said Gapany. The requested report must provide a general picture that is not limited to the Credit Suisse case. “We can and must ensure that a situation like this does not happen again.”

To this end, the Committee makes the following demands of the Federal Council:

• It is intended to ensure that the “too big to fail” rule will always apply in the future.
• Banks should be able to close down systemically important units and foreign branches.
• The banking law will be amended in such a way that the risk of large banks is “drastically” reduced.
• The Council of States advocates higher shares, limitation of bonuses and more power to fine Finma.
• He should explain how the board and management of such a bank can be held accountable in the future.
• In particular, the Bundesrat should examine the conduct, responsibility, liability conditions and remuneration of those responsible for management.
• He will investigate the effects of the acquisition by UBS on competition.

Report yes – mandatory measures no

The Federal Council agreed to the orders and agreed to present the report within a year. He wrote that the incidents and existing “too big to fail” rules should be thoroughly evaluated. He also wants to include external reports in the analysis.

However, the Bundesrat is currently unwilling to commit itself to implementing measures. The requested report indicates which measures are now indicated. (SDA/sq)

Source:Blick