The long-awaited report on the collapse of Credit Suisse is set to be published in the coming days, potentially leading to stricter oversight of its new owner UBS. The report, which was commissioned by the Swiss parliament, aims to shed light on the official response to the bank’s demise and provide recommendations for preventing a similar crisis in the future.
Credit Suisse, once a pillar of the Swiss financial establishment, unraveled in a series of scandals that culminated in its state-engineered rescue by larger rival UBS in March 2023. The collapse of the 167-year-old bank has been attributed to mismanagement by its leadership, and the government hopes that the report’s findings will inform new regulations to prevent a repeat of the crisis.
One of the key proposals put forth by the government is for UBS and other systemically important banks to hold more capital. However, UBS has warned against this, citing the ongoing uncertainty surrounding the report’s findings as a potential hindrance to its outlook.
While the report itself is unlikely to have a direct impact on UBS, its findings could set the tone in Switzerland. Depending on the headlines that emerge, it could influence public and political opinion on the need for stricter oversight of the banking sector.
The parliamentary committee, known as PUK, has been highly secretive, but leaks suggest that authorities will face criticism, particularly market regulator FINMA. This aligns with indications from lawmakers and officials, who have hinted at potential shortcomings in FINMA’s handling of the crisis. The report is also expected to criticize the Swiss National Bank and its former chairman Thomas Jordan for not taking more decisive action to save the bank.
The PUK, which had promised to publish its report by the end of 2024, has yet to announce an exact date for its release. However, a spokesperson has confirmed that it will still be published this year. The report’s findings could have a significant impact on the Swiss financial landscape, potentially leading to changes in regulations and oversight of the banking sector.