The report by Swiss lawmakers on the collapse of Credit Suisse in 2023 reveals a culture of secrecy and mistrust among officials that hampered the country’s response to the bank’s problems. The 560-page-plus report sheds light on the behind-the-scenes meetings and lack of documentation that left key government ministers in the dark and hindered preparations for the eventual state-backed rescue and sale of Credit Suisse to UBS.
The report highlights the practice of “non-meetings” among officials, which were favored by former Swiss National Bank president Thomas Jordan and former finance minister Ueli Maurer. These informal gatherings were undocumented for fear of leaks, leaving government officials without the necessary information to address the bank’s problems. This led to confusion and conflict within the government, as well as complaints from officials.
One instance cited in the report is a conversation between the Swiss president and the chancellor in early November 2022, where they were unable to discuss the bank’s troubles due to a lack of paperwork. Maurer also repeatedly opted for non-meetings, leading to demands from Swiss officials for written information about a possible intervention in the crisis.
The report also highlights meetings between the central bank chief and the then-Credit Suisse chairman, Axel Lehmann, as the bank was losing billions of dollars in late 2022. However, the authors were unable to reconstruct the exact details of these meetings.
The culture of secrecy and lack of transparency within the Swiss government has raised concerns about the country’s reputation as a reliable center for offshore wealth. The report also raises questions about the effectiveness of global banks and governments in dealing with financial crises.
The impact of this report could be significant, as it exposes the flaws in Switzerland’s financial system and the need for greater transparency and accountability. It also serves as a warning to other countries and financial institutions to address similar issues and prevent future collapses.