Swiss authorities draw flak in Credit Suisse probe, report says

Published On : 07/15/2024

Swiss authorities draw flak in Credit Suisse probe, report says

ZURICH (Reuters) – Preliminary findings in an eagerly awaited parliamentary report into the 2023 collapse of Credit Suisse have identified serious failings by Swiss regulatory authorities leading up the bank’s demise, a Swiss newspaper reported on Sunday.

Citing sources inside the parliamentary committee drawing up the so-called PUK report, SonntagsZeitung said financial market regulator FINMA, the Swiss National Bank (SNB) and the finance ministry all drew fire for failing to prevent the bank crash.

Isabelle Chassot, head of the parliamentary committee, told Reuters the body was advancing with its work and had established the statement of facts. However, she underlined that the committee had not yet drawn any conclusions on the matter.

“There is therefore no assessment nor criticism from the committee at this stage,” she said. “The mention in the article of a majority or a minority opinion inside the committee does not correspond to reality.”

The newspaper cited findings for the PUK report, which is expected to be published later this year, saying that FINMA was too hesitant and could have intervened when it became apparent that Credit Suisse was facing major problems.

The findings also pointed to a lack of preparation and other errors by Swiss authorities including the central bank, it said.

After problems began mounting at the bank in 2022, Credit Suisse unravelled in March 2023 and was taken over by longtime rival UBS after a rescue engineered by authorities.

FINMA and the SNB did not immediately respond to requests for comment. The finance ministry had no comment.

Earlier this month, SNB chairman Thomas Jordan said Credit Suisse’s management had caused the collapse and that authorities were well prepared and had prevented a wider financial crisis.

(Reporting by Noele Illien; Additional reporting by Dave Graham; editing by David Evans)

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