Swiss Lawmakers’ Probe of Credit Suisse Crash to Kick Off This Week: Report

<p>A 14-member
parliamentary commission will begin its investigation into the collapse of
Credit Suisse this week, Reuters reported today (Tuesday). The probe comes
three months after Swiss lawmakers <a href="https://www.financemagnates.com/institutional-forex/swiss-lawmakers-reject-chf-109b-guarantee-to-credit-suisse/" target="_blank" rel="follow">rejected</a> the government’s CHF 109 billion rescue package for rival lender UBS to take over troubled Credit Suisse. </p><p>Commission Investigates Credit Suisse Collapse</p><p>In March, the shares of
Credit Suisse, Switzerland’s second-largest lender
at the time,
plummeted to <a href="https://www.financemagnates.com/institutional-forex/credit-suisse-shares-hit-all-time-low-following-silicon-valley-bank-collapse/" target="_blank" rel="follow">an all-time low</a>, resulting in the collapse of the <a href="https://www.financemagnates.com/institutional-forex/credit-suisse-reports-chf-73-billion-annual-loss-in-2022/" target="_blank" rel="follow">already-troubled</a> banking giant. The event, which happened in the wake of the <a href="https://www.financemagnates.com/cryptocurrency/svb-crisis-circle-escapes-usdc-depeg-with-regulatory-assurance/" target="_blank" rel="follow">recent banking crisis</a> in the United States, forced the Swiss government to
engineer an <a href="https://www.financemagnates.com/institutional-forex/swiss-lawmakers-reject-chf-109b-guarantee-to-credit-suisse/" target="_blank" rel="follow">emergency takeover</a> of the lender by UBS.
However, the government intervention, which majorly bypassed the parliament, drove Swiss lawmakers
up the wall. </p><p>Last month, UBS <a href="https://www.financemagnates.com/institutional-forex/ubs-completes-credit-suisse-takeover/" target="_blank" rel="follow">finalized</a> its acquisition of Credit Suisse, creating a banking
behemoth with a balance sheet of $1.6 trillion
and a workforce of 120,000. The Swiss government also backed the merger with <a href="https://www.financemagnates.com/fintech/switzerland-gives-10b-loss-guarantee-to-ubs-for-credit-suisse-takeover/" target="_blank" rel="follow">a $10 billion loss guarantee</a>. </p><p>However, the Swiss
Parliament in early June formally agreed to
create a commission to probe the crash. Swiss
lawmakers
later handed the duty to a multi-party team headed by Isabelle Chassot from the
centrist Mitte party. </p><p>According to Reuters,
the commission will beam its search on measures taken by
public authorities before and during the emergency acquisition of Credit
Suisse. It will also scrutinize the actions taken by the Swiss executive arm,
the Swiss National Bank (SNB), the Federal Department of Finance and the Swiss
Financial Market Supervisory Authority (FINMA). </p><p><a href="https://www.financemagnates.com/" target="_blank" rel="follow">Finance Magnates</a>
reported that before UBS agreed to merge with Credit Suisse, SNB <a href="https://www.financemagnates.com/institutional-forex/swiss-crisis-credit-suisse-borrows-chf-50b-to-escape-liquidity-troubles/" target="_blank" rel="follow">provided a CHF 50 billion</a> (about $54 billion) credit facility to Credit Suisse to support the bank’s liquidity and preserve
investor confidence. On its part, FINMA <a href="https://www.financemagnates.com/institutional-forex/ubs-credit-suisse-deal-brings-havoc-to-global-markets/" target="_blank" rel="follow">wrote down $17 billion</a> in Credit Suisse’s additional tier one (AT1) bonds, sending
global financial markets into turmoil.</p><p>With the investigation due to start this week, the Commission has the next one and a half years to make its finding and
put forward recommendations
to the government and parliament, Reuters reported.</p><p>Spotware appoints new CEO; XS.com welcomes Marketing Manager; <a href="https://www.financemagnates.com/forex/news-nuggets-11-july-spotware-appoints-new-ceo-xscom-welcomes-marketing-manager/" target="_blank" rel="follow">read today's news nuggets</a>.</p>

This article was written by Solomon Oladipupo at www.financemagnates.com.