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☆ Switzerland says UBS may need more cash. The bank is fuming
▼ + stars: | 2024-04-24 | by ( Hanna Ziady | ) edition.cnn.com time to read: +4 min

Now, the giant Swiss lender is hitting back, saying its finances are robust and warning that the proposal could harm Switzerland’s standing as a global financial center. “There can be no regulatory solution for a broken business model,” he continued, referring to Credit Suisse. UBS bought its stricken rival last March in a government-orchestrated rescue aimed at preventing a global financial crisis. It was not too-low capital requirements that forced Credit Suisse into the historic weekend rescue,” he added. But that leaves the stock more vulnerable to declines as a result of “execution risk in the Credit Suisse integration,” suggested Citi analyst Andrew Coombs.

Persons: London CNN —, Colm Kelleher, “, ”, Kelleher, Pascal Mora, Karin Keller, Keller Sutter, Anke, Andrew Coombs, ” Kelleher, Sergio Ermotti’s, Ermotti Organizations: London CNN, Credit Suisse, UBS, Bloomberg, Getty, RBC Capital Markets, Citi, Reuters Locations: Swiss, Switzerland, Europe

☆ Watch CNBC's full interview with Swiss Finance Minister Karin Keller-Sutter
▼ + stars: | 2024-04-19 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWatch CNBC's full interview with Swiss Finance Minister Karin Keller-SutterKarin Keller-Sutter, the finance minister for Switzerland, discusses the "Too Big to Fail" measures recently introduced to regulate the Swiss financial system, and how they could be adopted by other jurisdictions worldwide.

Persons: Karin Keller, Sutter Karin Keller, Sutter Organizations: Swiss Locations: Switzerland, Swiss

☆ It's important to learn lessons from Credit Suisse crisis, Switzerland's finance minister says
▼ + stars: | 2024-04-18 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailIt's important to learn lessons from Credit Suisse crisis, Switzerland's finance minister saysSwiss Finance Minister Karin Keller-Sutter says the country should learn lessons from Credit Suisse's failure and devise new legislation in an effort to prevent it happening again.

Persons: Karin Keller, Sutter Organizations: Credit Suisse, Swiss

☆ UK and Switzerland sign post-Brexit financial services deal
▼ + stars: | 2023-12-21 | by ( Karen Gilchrist | ) www.cnbc.com time to read: +2 min

The U.K. and Switzerland are deepening the ties between their financial services sectors with a new post-Brexit deal. Sopa Images | Lightrocket | Getty ImagesLONDON — The U.K. and Switzerland on Thursday signed a post-Brexit financial services deal designed to bring two of Europe's largest banking centers closer together. He added that the mutual recognition accord, dubbed the Bern Financial Services Agreement, would provide a "blueprint" for future deals with other countries. As such, financial services providers and insurers will be able to offer certain cross-border activities in both Switzerland and the U.K. Meanwhile, U.K. advisors will be permitted to "temporarily serve" wealthy clients locally in Switzerland without registering in the country.

Persons: Jeremy Hunt, Hunt, Karin Keller, Sutter Organizations: Getty, British, CNBC, European Union, Swiss, U.K, City Locations: Switzerland, Britain, Bern, City of London

☆ Global watchdog reveals tensions at heart of Credit Suisse debacle
▼ + stars: | 2023-10-10 | by ( Huw Jones | ) www.reuters.com time to read: +5 min

Logos of Swiss banks Credit Suisse and UBS are seen before a news conference in Zurich Switzerland, August 30, 2023. The report, however, exposed tensions and conflicts at the heart of a process that ultimately required Switzerland to initially back the emergency rescue of Credit Suisse by rival UBS (UBSG.S) with public money to avert panic. The officials summed up that the "resolution" rules for shutting a collapsing bank without panicking markets could have worked for Credit Suisse, though public money would still likely have been needed. The FSB report sheds new light on events that led to Credit Suisse's downfall. The FSB said Switzerland's action preserved financial stability, even if it raised questions as to why the resolution was not chosen.

Persons: Denis Balibouse, Karin Keller, Sutter, Switzerland's Keller, FINMA, Andrew Bailey, Arturo Bris, Mayra Rodriguez Valladares, Arthur Wilmarth, it’s, Tatiana Bautzer, Elisa Martinuzzi, Stefania Spezzati, Pete Schroeder, Mark Potter, Nick Zieminski Organizations: Credit Suisse, UBS, REUTERS, UBS Group, Swiss, U.S, Bank of England, IMD, Bank, MRV Associates, Banco, George Washington University Law School, Thomson Locations: Zurich Switzerland, Switzerland, Swiss, U.S

☆ Low-tax Switzerland votes on global minimum corporate tax rate
▼ + stars: | 2023-06-14 | by ( John Revill | ) www.reuters.com time to read: +4 min

In 2021 almost 140 countries including Switzerland agreed to an Organisation for Economic Cooperation and Development (OECD) deal to ensure large companies pay a minimum tax rate of 15%, to prevent them trying to avoid taxation by transferring profits to low tax countries. Reuters GraphicsEach of Switzerland's 26 cantons can set its own corporate tax rate, but the federal government would impose a top-up tax to ensure companies are paying 15 percent, raising up to 2.5 billion Swiss francs ($2.76 billion) in tax revenue. She said last month, "this minimum tax is coming, with or without Switzerland." Swiss Holdings, a group representing 62 multinationals in Switzerland including Nestle, Johnson & Johnson, and IKEA, supported the minimum tax. Stefan Kuhn, Head of Tax and Legal at KPMG Switzerland, said the top-up tax "gives cantons the money to do something smart to remain competitive."

Persons: Arnd, Fabian Molina, Karin Keller, Johnson, Christian Frey, Stefan Kuhn, Kuhn, John Revill, Alexandra Hudson Organizations: REUTERS, Switzerland Broad, Economic Cooperation, Development, GFS, Google, Nestle, Reuters, Union, Social Democrats, Sutter, OECD, Swiss Holdings, Johnson, IKEA, KPMG Switzerland, Alexandra Hudson Our, Thomson Locations: Bernese, Lake Zug, Zug, Switzerland, ZURICH, Swiss, GFS Bern, Germany, Japan, Basel, Economiesuisse

☆ UBS’s $10 bln state guarantee is a useful fantasy
▼ + stars: | 2023-06-07 | by ( Liam Proud | ) www.reuters.com time to read: +4 min

LONDON, June 7 (Reuters Breakingviews) - UBS (UBSG.S) and the Swiss government have negotiated a state backstop that neither side wants to use. The scheme, designed to sweeten the Credit Suisse (CSGN.S) rescue, would see the government cover $10 billion of losses on former Credit Suisse assets after UBS swallows the first $6 billion. One option could be for the state to guarantee only a limited subset of former Credit Suisse assets – just the ones that UBS plans to get rid of, for example, like fixed-income derivatives. The government could also insist on dividend or buyback restrictions if the Swiss bank ever taps the scheme. The guarantee would only kick in after UBS has swallowed 5 billion Swiss francs ($6 billion) of losses.

Persons: Sergio Ermotti, Karin Keller, Sutter, Ermotti, that’s, ”, Neil Unmack, Oliver Taslic Organizations: Reuters, UBS, Swiss, bank’s, Credit Suisse, Switzerland’s Social, –, RBC, AG, U.S . Securities, Exchange Commission, Thomson Locations: Swiss

☆ Credit Suisse has paid back government-backed liquidity
▼ + stars: | 2023-06-01 | by ( ) www.reuters.com time to read: +1 min

ZURICH, June 1 (Reuters) - Credit Suisse (CSGN.S) has repaid the liquidity it borrowed from a 100 billion Swiss franc ($112.50 billion) lifeline backed by government guarantees, Swiss Finance Minister Karin Keller-Sutter said in an interview published on Wednesday. "The federal guarantees, the 100 billion, have been repaid as of yesterday (Tuesday)," Keller-Sutter told Swiss broadcaster SRF. As part of its state-orchestrated rescue and takeover by rival bank UBS (UBSG.S), Credit Suisse was given access to over 200 billion francs in liquidity support, 100 billion of which was backed by the government. In its quarterly results published in April, Credit Suisse said "the net amount of borrowings under these facilities amounted to 108 billion Swiss francs." ($1 = 0.8889 Swiss francs)Reporting by Noele Illien; editing by Jason NeelyOur Standards: The Thomson Reuters Trust Principles.

Persons: Karin Keller, Sutter, Keller, Noele, Jason Neely Organizations: Credit Suisse, Swiss, SRF, UBS, Thomson Locations: ZURICH, Swiss

☆ Resolving Credit Suisse: an alternative history
▼ + stars: | 2023-04-27 | by ( Liam Proud | ) www.reuters.com time to read: +8 min

Reuters GraphicsThe market shock will be all the more extreme because Credit Suisse doesn’t obviously need more capital. It seems perverse to put taxpayer money on the line while leaving the Credit Suisse bonds untouched. Of the 30 global lenders classed as systemically important by the Financial Stability Board, Credit Suisse is the third-smallest by total assets. It also enables the Swiss National Bank to offer Credit Suisse an open-ended credit line, hopefully ending the bank run. Credit Suisse is suffering from a crisis of confidence brought on by years of mismanagement, rather than a system-wide meltdown.

☆ Rivals can feast on Credit Suisse client spoils
▼ + stars: | 2023-04-17 | by ( Lisa Jucca | ) www.reuters.com time to read: +4 min

Credit Suisse saw 110 billion Swiss francs flying out the door in the final quarter of 2022. These outflows were chiefly cash from wealthy clients and some deposits at Credit Suisse's Swiss bank unit. Those holding accounts at both Credit Suisse and UBS may dislike too much wealth concentration. And Credit Suisse is hardly incentivised to transfer securities swiftly. The minister said this was needed because Credit Suisse customers had again withdrawn money.

PARLIAMENT 'CIRCUMVENTED'The Credit Suisse/UBS merger marked the first time that parliament had withheld its support for emergency laws designed to deal quickly with crises. Swiss Finance Minister Karin Keller-Sutter defended the use of the emergency powers, saying Switzerland was not an "emergency dictatorship." "The emergency law is based on the federal constitution and I don't think it's correct to say it's illegal." "Politicians might have wanted to show their disapproval about what happened, but they don’t want the UBS takeover to fail." The use of such emergency legislation, overturning antitrust rules, is a problem for Swiss democracy and rule of law.

☆ Swiss parliament seeks elusive compromise over Credit Suisse rescue
▼ + stars: | 2023-04-12 | by ( Noele Illien | ) www.reuters.com time to read: +3 min

While the upper house approved the government's 109 billion Swiss franc ($120.82 billion) contribution to the rescue package, parliament's lower, and larger chamber, later rejected it. Seeking a compromise, the upper house passed changes to the measure on Wednesday morning, which the lower house will vote on later in the day. As they returned on Wednesday, the upper house passed changes, which include a proposal for Switzerland's federal government to draft an amendment to the country's Banking Act. Its aim would be to reduce the risks posed by systemically relevant banks, such as Credit Suisse and UBS for Switzerland, by, for example, raising capital requirements and restricting bonuses. A shotgun marriage which saw Credit Suisse taken over by rival UBS (UBSG.S) for 3 billion Swiss francs and propped up with more than 250 billion Swiss francs in guarantees and support has drawn widespread criticism.

The lower house retrospectively rejected the rescue near midnight, with heated debates continuing into the early hours of Wednesday morning as members discussed other measures related to Credit Suisse. Earlier on Tuesday, Switzerland's upper house had approved the rescue, meaning the two chambers of the legislative body will vote again on Wednesday. A poll of Swiss economists found that nearly half thought the takeover of Credit Suisse by UBS was not the best solution, warning the saga had dented Switzerland's reputation. Politicians also questioned why the Swiss financial regulator was unable to prevent Credit Suisse's failure. There are also growing worries about jobs and in an open letter to parliament, the Swiss Bank Employees' Association said that Credit Suisse and UBS must freeze any cuts.

☆ How to avoid the next crisis? Banks may have to hold more cash
▼ + stars: | 2023-04-12 | by ( Anna Cooban | ) edition.cnn.com time to read: +4 min

London CNN —Regulators must learn “important lessons” from this year’s banking turmoil, the world’s top financial watchdog has said. Requiring banks to hold more cash to pay out depositors may be one of them. External shocks that have roiled global markets in recent years include the coronavirus pandemic and Russia’s invasion of Ukraine. In other words, banks could be told to hold more assets that can be easily converted into cash to pay back creditors in times of crisis. In the United States, the Federal Deposit Insurance Corporation said it would guarantee all deposits held within Silicon Valley Bank, including those above $250,000 per person.

SummarySummary Companies Swiss upper house approved Credit Suisse rescueFrustration in Switzerland over use of state fundsLawmakers have protested, but cannot overturn dealBERN, April 11 (Reuters) - Switzerland's upper house of parliament voted on Tuesday after a heated debate to approve retrospectively the 109 billion Swiss francs ($120.5 billion) in financial guarantees used to rescue Credit Suisse (CSGN.S) last month. But 29 of Switzerland's 46-member Council of States upper house approved the measure. "The use of emergency law has reached a level in the last three years that is beginning to annoy me," Hansjoerg Knecht, a member of Parliament's upper house, said. Politicians also questioned why the Swiss financial regulator was unable to prevent Credit Suisse's failure. Eva Herzog asked during a speech to the upper house.

☆ Swiss finance minister sees no 'stumbling blocks' to UBS takeover of Credit Suisse
▼ + stars: | 2023-04-08 | by ( ) www.reuters.com time to read: +3 min

[1/2] Federal Councillor and chief of the finance federal department Karin Keller-Sutter attends a news conference on Credit Suisse after UBS takeover offer, in Bern, Switzerland, March 19, 2023. REUTERS/Denis BalibouseZURICH, April 8 (Reuters) - UBS's (UBSG.S) multi-billion state-sponsored takeover of Credit Suisse (CSGN.S) should proceed smoothly without political obstructions, Swiss Finance Minister Karin Keller-Sutter said in an interview published on Saturday. The Swiss parliament is due to hold an extraordinary session next week to discuss the emergency merger engineered by the Swiss authorities after Credit Suisse came close to collapse. "The primary goal of the Federal Council was to ensure the stability of the Swiss economy and the Swiss financial center and to prevent an international financial crisis," she said. The special parliamentary session next week was important, she added, and a welcome opportunity to get to the truth of the Credit Suisse debacle.

☆ Swiss sight deposits fall, suggesting Credit Suisse, UBS took less emergency help
▼ + stars: | 2023-04-03 | by ( John Revill | ) www.reuters.com time to read: +2 min

ZURICH, April 3 (Reuters) - Sight deposits held by the Swiss National Bank declined last week, data showed on Monday, suggesting that Credit Suisse (CSGN.S) and UBS (UBSG.S) may have cut back on use of emergency funds offered them to facilitate their planned merger. Total sight deposits - meaning commercial bank cash held by the central bank overnight - fell to 563.566 billion Swiss francs ($614.71 billion) from 567.003 billion francs in the previous week, the SNB data showed. Sight deposits had risen 51.8 billion francs the week before, the second biggest increase on record and probably linked to UBS and Credit Suisse tapping the liquidity lines offered by the SNB and Swiss government after the takeover was announced. Both banks have been offered 200 billion francs in emergency liquidity after Credit Suisse suffered massive outflows from worried investors. The SNB and Credit Suisse both declined to comment on the changes in sight deposits on Monday.

“I have argued for years that the biggest banks in the world are still too big to fail. In practice, however, the economic damage would be considerable.”Keller-Sutter was at the center of a government-orchestrated rescue of Credit Suisse by its larger rival UBS (UBS) earlier this month. Global standards for dealing with teetering “too big to fail” banks were key a part of the package of rules introduced after the global financial crisis. They were designed to make it possible to wind down a big bank without destabilizing the financial system or exposing taxpayers to the risk of losses. The rest is lent out at higher interest rates or invested, because that’s how big banks make most of their profit.

“I have argued for years that the biggest banks in the world are still too big to fail. In practice, however, the economic damage would be considerable.”Keller-Sutter was at the center of a government-orchestrated rescue of Credit Suisse by its larger rival UBS (UBS) earlier this month. They were designed to make it possible to wind down a big bank without destabilizing the financial system or exposing taxpayers to the risk of losses. Although some investors in Credit Suisse bonds lost everything, Swiss taxpayers are still on the hook for up to 9 billion Swiss francs ($9.8 billion) of potential losses arising from certain Credit Suisse assets. The rest is lent out at higher interest rates or invested, because that’s how big banks make most of their profit.

☆ Swiss sight deposits jump, suggesting Credit Suisse, UBS took emergency liquidity
▼ + stars: | 2023-03-27 | by ( ) www.reuters.com time to read: +2 min

[1/2] A logo is pictured on the Credit Suisse bank in Geneva, Switzerland, March 15, 2023. Sight deposits - cash held by the SNB for commercial banks overnight - jumped to 567 billion Swiss francs ($619 billion) from 515 billion francs a week earlier. Last week's rise indicates that both UBS and Credit Suisse may have used some of the 200 billion francs in extra liquidity offered by the SNB as part of a state-sponsored rescue of Credit Suisse. UBS agreed to buy Credit Suisse for 3 billion Swiss francs in stock in a merger engineered to avoid more market-shaking turmoil in global banking. Credit Suisse had already said it would take 50 billion francs from the SNB under its emergency liquidity assistance (ELA) facility before the UBS takeover.

☆ Swiss finance minister defends rushed banking takeover
▼ + stars: | 2023-03-25 | by ( ) www.reuters.com time to read: +1 min

"Credit Suisse would not have survived Monday," Karin Keller-Sutter said, explaining the need to find a swift solution for Credit Suisse's woes. Last Sunday it was announced that UBS (UBSG.S) had agreed to buy its rival Credit Suisse (CSGN.S) for 3 billion Swiss francs ($3.23 billion) in stock and agreed to assume up to 5 billion francs ($5.4 billion) in losses in a merger engineered by Swiss authorities to prevent more market turmoil in global banking. Shareholders, for example, who would normally get a say in such a takeover were largely bypassed, which has angered some of them. Keller-Sutter said the Swiss government's executive Federal Council "only went as far as was absolutely necessary to achieve the goal of stabilisation". ($1 = 0.9199 Swiss francs)Reporting by Noele Illien Editing by Giles ElgoodOur Standards: The Thomson Reuters Trust Principles.

☆ Credit Suisse accessed billions in liquidity last weekend, Swiss finance minister says
▼ + stars: | 2023-03-25 | by ( ) www.reuters.com time to read: +1 min

ZURICH, March 25 (Reuters) - Credit Suisse (CSGN.S) tapped the Swiss National Bank for "a large multi-billion amount" last weekend to secure its liquidity, the country's finance minister Karin Keller-Sutter told Swiss broadcaster SRF on Saturday. The troubled Swiss bank had said last week it intended to borrow up to 50 billion Swiss francs from the country's central bank to boost its liquidity. "Last weekend, a large multi-billion amount was withdrawn by Credit Suisse for liquidity protection," Keller-Sutter said. Keller-Sutter said "it is to be assumed" that the figure was above 50 billion Swiss francs ($54.35 billion), but said the Swiss National Bank had the exact number. Last Sunday, UBS (UBSG.S) agreed to buy its rival Credit Suisse (CSGN.S) for 3 billion Swiss francs in stock and agreed to assume up to 5 billion francs in losses in a merger engineered by Swiss authorities to prevent more market turmoil in global banking.

☆ The Swiss claim the U.S. banking crisis ultimately toppled Credit Suisse. But are they right?
▼ + stars: | 2023-03-24 | by ( Elliot Smith | ) www.cnbc.com time to read: +3 min

Pascal Mora | Bloomberg | Getty Imageswatch nowHowever, the downward spiral of Credit Suisse's share price and mounting asset outflows were underway long before the collapse of Silicon Valley Bank earlier this month. Swiss regulator FINMA has come under fire for allowing the situation to deteriorate as the bank spent years mired in losses and scandal. Mark Yallop, chairman of the U.K.'s Financial Markets Standards Board and former U.K. CEO at UBS, told CNBC on Tuesday that he agreed with the broad assessment that Credit Suisse's downfall was "idiosyncratic." "It's unfortunate that the problems with some of the smaller U.S. banks in the last two or three weeks happened at the same time as this issue with Credit Suisse but the two are completely different and very largely unrelated," he said. By contrast, the Swiss banking and regulatory system has come under fire.

☆ Swiss regulator says central bank loan to Credit Suisse justified AT1 bond writedown
▼ + stars: | 2023-03-23 | by ( Elliot Smith | ) www.cnbc.com time to read: +2 min

Swiss regulator FINMA on Thursday defended its decision to instruct Credit Suisse to write down its AT1 bonds — a controversial part of the lender's emergency sale to UBS — saying it was a "viability event." The regulator said the loan Credit Suisse received from the Swiss National Bank last week, backed by the federal government, meant the conditions for a writedown had been met. The regulator instructed Credit Suisse to write down 16 billion Swiss francs of AT1 bonds, widely regarded as relatively risky investments, to zero, while equity shareholders will receive payouts at the stock's takeover value. "As Credit Suisse received extraordinary liquidity assistance loans secured by a federal default guarantee on 19 March 2023, these contractual conditions were met for the AT1 instruments issued by the bank." The Swiss federal government enacted an emergency ordinance to guarantee the additional liquidity assistance from the SNB to Credit Suisse, in order to ensure the successful implementation of the UBS takeover.

☆ The Swiss government has put a stop to some Credit Suisse banker bonuses after public backlash over the state-engineered rescue plan
▼ + stars: | 2023-03-22 | by ( Huileng Tan | ) www.businessinsider.com time to read: +3 min

Switzerland is halting some Credit Suisse banker bonuses. It's a U-turn from before when CS had told staff they would still receive bonuses — even for 2023. The Swiss federal finance ministry said in a statement on Tuesday that it's "temporarily suspending certain forms of variable remuneration for Credit Suisse employees. The Swiss government has been careful about its messaging about the rescue of Credit Suisse, which involves an around $3.25 billion acquisition by UBS, a larger lender. Credit Suisse did not immediately respond to Insider's request for comment sent outside regular business hours.

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