Switzerland’s financial regulator said on Tuesday it needs stronger legal powers after the collapse of Credit Suisse, the 167-year-old bank that rival UBS took over in March under a government-brokered deal.
FINMA said its supervisory work from 2018 to 2022 included 108 on-site reviews at the bank, which produced 382 findings requiring action, 113 of them rated high or critical risk. Over the years it launched 43 preliminary investigations, issued nine reprimands, filed 16 criminal charges and took 11 enforcement proceedings against the bank, plus three against individuals.
The regulator called for “extended options that would enable it to have more influence on the governance of supervised institutions,” including a Senior Managers Regime, the power to impose fines and stricter rules on corporate governance.
Credit Suisse was brought down by a run of risk-management failures and scandals that drained the confidence of clients and investors. The rescue by UBS was agreed in March; the Swiss National Bank made 100 billion Swiss francs of liquidity available, and shareholders received one UBS share in exchange for every 22.48 Credit Suisse shares held.
FINMA added that plans to de-risk the bank, such as shrinking the investment bank, were “not implemented consistently,” while repeated scandals eroded its reputation.
Sources
- Swiss regulator calls for more powers after Credit Suisse collapse
- UBS, Switzerland's Biggest Bank To Purchase Credit Suisse In A Rescue Deal For $3.25 Billion – Inventiva
