Keller-Sutter gets help from expensive Zurich lawyers

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How do you save a big bank? This question overwhelms even the best financial specialists and attorneys in the federal government. Within a few days, in mid-March, the Bundesrat had to decide how to prevent the bank from collapsing the entire financial center and with it the Swiss economy.

The government needed help for that. As evidenced by a listing on the Federal Procurement Platform, the Finance Department, headed by Federal Councilor Karin Keller-Sutter, 59, brought on board outside attorneys for the CS rescue.

Assistance with billion-dollar guarantees

The large law firm Niederer Kraft Frey AG, based in Zurich’s Bahnhofstrasse, is advising the federal government on questions related to the merger of the two major banks CS and UBS. The Federal Council charges the lawyers more than ten million Swiss francs. Nearly two million are on hold. Another 8.3 million are so-called options – this means that the federal government does, but does not have to, seek further advice for this amount. As requested.

According to the surcharge, the federal government mainly needs help with regard to the 109 billion guarantees that the Federal Council has given to the Swiss National Bank and UBS. The National Council has refused to approve the CS-UBS deal. But since the Federal Council has given the guarantees on the basis of the emergency law and the parliamentary finance delegation has already approved them, they remain in force.

Where does the federal government get the money from?

Since the merger must be implemented very quickly, the loss protection guarantee must also be drawn up immediately, the federal financial administration justifies the need for support. The law firm from Zurich is well networked internationally and has relevant experience in the field of warranties, the statement continues. In addition, the company was able to demonstrate “a clear and convincing strategy” in the offer.

The Bundesrat had applied to parliament for an additional loan of CHF 5 million for 2023 to cover the legal costs and other expenses related to the CS rescue. But because the National Council said no, the federal government is not getting this money now. “We are now investigating what this means for further work,” the finance department said at Blick’s request. Keller-Sutter’s department has no choice but to save elsewhere to pay the expensive Zurich lawyers.

Source:Blick