Switzerland’s financial regulator fails to address Credit Duisse Scandals
Date
12/24/2024 2:51:24 AM
(MENAFN) Switzerland's financial regulator did not effectively address the scandals at Credit Suisse, where poor executive management led to the bank's collapse and nearly caused a global financial crisis, according to a Swiss parliamentary inquiry report released on Friday.
The inquiry, which spanned 18 months, concluded that "Credit Suisse’s long-term mismanagement is the cause of the crisis" following the dramatic failure of the bank in March 2023.
"The board of directors and management of Credit Suisse in recent years are responsible for the loss of confidence in the bank," the commission stated.
The investigation found no evidence suggesting that the collapse of Credit Suisse was due to misconduct by regulatory authorities.
As Switzerland’s second-largest bank, Credit Suisse was one of 30 global banks considered "too big to fail" due to its significance in the international banking system.
However, after the collapse of three regional banks in the United States in March 2023, Credit Suisse appeared to be the weakest link, with its stock value plummeting by over 30 percent on March 15, 2023.
On March 19, the Swiss government, central bank, and the Financial Market Supervisory Authority (FINMA) pressured UBS, the country’s largest bank, into a USD3.25 billion acquisition of Credit Suisse, which was announced just before the markets reopened the following day.
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