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In the “Arena”, parliamentarians debated the responsibility of politicians and suitable measures so that the state never again has to save a systemically important bank.
An unholy alliance of SVP, SP and Greens rejected the federal CS rescue operation in the National Council this week. The Council of States had previously approved the federal guarantee of CHF 109 billion in the event that the takeover of Credit Suisse by UBS goes wrong.
“It is irresponsible to continue as before,” said SP National Councilor Samira Marti the SP’s no in the “Arena”. The bourgeois majority did not advocate fundamentally changing the system. But this is urgently needed: “Government guarantees mean that banks take high risks. If they make losses, the taxpayers have to take responsibility for it.” There should never be a case of CS again, so stricter regulations are now needed. In order to eradicate false incentives, Marti demands that bonuses be banned.
“Stop with this ban on bonuses, that won’t get us anywhere,” complained Urs Mettler, an employee at Bank Julius Baer. Bonuses are not bad per se. There are amounts that are “beyond”, such as the CHF 90 million that former CS CEO Brady Dougan withdrew in 2010. “A company should only pay out bonuses if it makes a profit.”
But it’s not the bank that makes mistakes, Mettler said, it’s the people behind them. That’s part of the problem: “Apparently it doesn’t scratch the board of directors when they get a billion fine in America. Because the bank pays them. » Finma should therefore be able to impose fines on the people responsible.
FDP Council of States Ruedi Noser finds the rejection of the left and the SVP incomprehensible. The state made a lot of money during the 2008 financial crisis. “If we pull together, this time not one franc will be used up by the 259 billion state guarantees.” According to Noser, Switzerland should not be viewed in isolation. “The rescue package guarantees the international financial world that UBS can handle the takeover.” New rules would now have to be coordinated with other states.
The SVP is demanding a clear message from the Federal Council as to what measures are to be taken so that such a debacle no longer occurs, said SVP National Councilor Lars Guggisberg. “We have a law that doesn’t work and a regulator that didn’t act in time.” As a result, there should no longer be any companies that are so systemically important that they sweep the entire economy with them when they fail. In addition, you have to get away from the “melomaniac, risky American corporate culture,” said Guggisberg.
The Greens also showed politicians the red card in the special session. “If the state has to intervene with public money in such a scandalous and irresponsible action as at Credit Suisse, then Switzerland should also be allowed to set conditions,” said Green National Councilor Gerhard Andrey. These guidelines are intended to create a sustainable financial center in order to meet the climate target and protect biodiversity.
The no of the SVP, SP and the Greens is “a strong signal to politicians, but also to UBS,” said economist Alexandra Janssen. The focus of the discussion must now be how big a bank in Switzerland, as a small country, can be. Janssen sees a mixture of different measures as a solution. “There are many complexities that are very difficult to assess from the outside.” But politicians can ensure that the incentives are right.