Against managers and authorities
Prosecutors are apparently investigating the Credit Suisse takeover
4/2/2023 4:03 p.m
In a rush, the big bank UBS swallows the stumbling Credit Suisse. According to a media report, Swiss prosecutors are now checking whether all laws are being followed. They are targeting executives at both banks as well as government officials.
According to a media report, the Swiss federal prosecutor’s office has initiated investigations into the takeover of Credit Suisse by the UBS Group. The Bern-based public prosecutor’s office is investigating possible violations of the law by government officials, regulators and executives of both banks, the reported “Financial Times” with reference to the Attorney General. There are “numerous aspects of the events surrounding Credit Suisse” that warrant an investigation, it said. It is about uncovering criminal offenses that could fall within the competence of the public prosecutor.
Neither the Attorney General nor Credit Suisse initially commented on the report. Last month, the major bank UBS took over the badly battered rival Credit Suisse for three billion francs in a state-backed rescue operation.
Credit Suisse was on the brink of insolvency in mid-March as a result of a crisis of confidence. Around two weeks ago, the Swiss government and regulatory authorities urged UBS to swallow the traditional company practically overnight. The government resorted to emergency law for the takeover.
In Switzerland, the reactions were mostly negative. Politicians and the general public fear that competition with only one major bank will suffer and that Switzerland would hardly be able to save the new giant UBS in an emergency. According to a recent survey, economists were also mostly skeptical about the emergency takeover.