Who could become head of the new Swiss Superbank?

Bank crime: the decision is imminent

Next Sunday there will be a decisive meeting with the Bundesrat in the Credit Suisse case. The public should be informed later, as the “SonntagsBlick” writes. The preferred scenario of the regulators is a merger of the two large banks CS and UBS. The so-called Plan A aims to stop the complete collapse of investor confidence in Credit Suisse, writes the British financial newspaper “Financial Times”.

A collapse of CS as one of the 30 globally systemically important banks would set off a chain reaction that can no longer be controlled. At the end of this week, a possible emergency merger with UBS was already indicated. The CHF 50 billion liquidity support from the National Bank announced on Wednesday evening only provided temporary relief. Credit Suisse shares fell sharply again on Friday. At the end of the stock market, a share cost 1.86 francs – eight percent minus.

Jobs fear: Up to 10,000 at risk in merger

The situation surrounding the possible collapse of Credit Suisse creates great uncertainty – some 45,000 employees of the large bank are particularly affected. It is not clear whether jobs will disappear, how many there will be. Reuters news agency reports that up to 10,000 jobs would be lost if the company were integrated into UBS.

To secure jobs in the Swiss banking sector, the largest in the world relative to gross domestic product (GDP), it could be helpful if it was stipulated during the UBS acquisition that CS would be “released” and resold in the medium term. According to the SonntagsZeitung, a spin-off is not possible in the short term because all customer accounts run on the same IT platform.

Colm Kelleher – Switzerland’s new super banker?

As the merger of the two giant Swiss banks looms, there is already speculation about who could take over the leadership of the new Superbank. According to the “SonntagsZeitung”, many candidates are currently not on the radar. The most likely name at the moment is that of Colm Kelleher, 65 years old and currently chairman of the board of directors of UBS.

According to the newspaper, Kelleher has the necessary experience, can draw on a long career at the American bank Morgan Stanley as a wealth of experience and has undergone crisis testing: Kelleher was CFO of Wall Street Bank during the financial crisis and was there to reduce of the balance sheet and responsible for implementing a billion dollar cash injection. Born in Ireland, he enjoys a good reputation for his expertise.

All important developments regarding the situation at Credit Suisse in the live ticker:

Blocher does not want a merger, prefers foreign acquisitions

Former SVP federal councilor Christoph Blocher described a potential merger of major banks Credit Suisse (CS) and UBS as a “bad thing” for the Swiss workshop. In the long run, this would also be a problem for bank customers, the 82-year-old industrialist said in an interview with the “SonntagsBlick” published online Saturday.

There are deals that internationally active Swiss companies can only close with a large bank, in Switzerland with UBS or CS, according to the billionaire and former EMS chemical manager Blocher. “When there is no competition, the companies are at the mercy of the single bank.” If there was only one big bank, there would be no competition. Blocher did not categorically reject a takeover of the ailing Credit Suisse by a foreign bank.

Center chairman Pfister wants to strengthen Finma

After the rescue of Credit Suisse by the Swiss National Bank (SNB), middle president Gerhard Pfister wants to strengthen financial market regulator Finma “if necessary”. “We need to see if they should be given the option to hand out fines,” said Pfister. However, he does not want to change the rules for systemically important banks that were decided after the financial crisis. “The entrepreneurial responsibility for stabilizing CS now lies with CEO Ulrich Körner,” Pfister said in an interview with the “SonntagsZeitung”.

He relies on the CS leadership around Körner and Chairman of the Board of Directors Axel Lehmann. “I have the impression that the current management is doing everything they can to save the bank.” FDP president Thierry Burkart also wants to check the “regulatory effectiveness” of the banks, as he said in an interview with the “SonntagsZeitung”.

FDP-Burkart: Could cause international banking crisis

FDP chairman Thierry Burkart is also concerned about Finma’s role in the current banking crisis, saying in an interview with SonntagsZeitung: “I wonder if Finma should have acted sooner.” The effectiveness of the current regulations must now be evaluated.

Burkart also emphasizes that a solution to the situation is needed, with government intervention if necessary – even though he would prefer to avoid that.

He underlines the magnitude of the current situation: “Our companies, but also the international banking industry, are so closely linked that we would otherwise cause an international banking crisis.” According to Burkart, the Swiss banking center would cause serious and lasting reputational damage to the country.

(con/sda/dpa)