The Swiss bank Credit Suisse is solely responsible for the collapse of the 167-year-old institution in the spring of 2023, a parliamentary investigation shows.
A parliamentary investigative committee report released Friday said the bank had losses of 33.7 billion Swiss francs ($37.5 billion) over 12 years, but at the same time paid management 39.8 billion Swiss francs in performance bonuses.
More effective regulations for systemically important banks and clearer rules of cooperation between bodies responsible for financial stability are needed, according to the report.
In March 2023, when Credit Suisse ran into difficulties, it was sold to rival UBS in an emergency takeover agreed under government pressure and with the consent of the state.
This coincided with fears of a global financial crisis, after three smaller US regional banks were forced to close due to insolvency, reports SEEbiz.
In the 2022 financial year, Credit Suisse’s loss after speculative transactions and cash outflows amounted to 7.3 billion Swiss francs. This is the reason why the bank failed to stabilize its finances.
Despite a new investor, the Saudi National Bank, and a billion-euro credit line from the Swiss National Bank, Credit Suisse’s bankers have been unable to turn things around.
