Swiss parliamentarians are set to meet in Bern on Tuesday for an extraordinary session to discuss the recent rescue of Credit Suisse by UBS and the government's
response to it. The rescue package saw Credit Suisse taken over by rival UBS for CHF 3 billion ($3.3 billion) and propped up with over CHF 250 billion in guarantees and support. The massive loans given as part of the rescue package are likely to be criticised by parliamentarians, although the vote is largely symbolic as the state has already committed the funds and lawmakers cannot overturn the decision. The rescue package was approved by a sub-group of six members of parliament, which has caused anger among the other lawmakers. The rescue has also angered many in Switzerland, with a survey by political research firm gfs.bern finding that a majority of Swiss did not support the deal. A poll of Swiss economists found that nearly half thought the takeover of Credit Suisse by UBS was not the best solution and warned that the saga has dented Switzerland's reputation. Meanwhile, Switzerland's KOF economic research institute found that 48% of the 167 university economists it questioned would have preferred a state takeover and possible later sale of Credit Suisse.
In Tuesday's session, lawmakers will get a chance to discuss whether conditions can be imposed on Credit Suisse. The centre-right FDP party has demanded a thorough investigation into how the Credit Suisse crisis could have come about and criticised the de facto state guarantee of the systematically important banks. The rescue has also led to growing worries about a staff cull. The Swiss Bank Employees' Association has written an open letter to parliament, calling on Credit Suisse and UBS to freeze any job cuts.
The rescue of Credit Suisse has caused a storm in Switzerland, with many parliamentarians and the population as a whole criticising the massive loans given as part of the rescue package. The rescue has also dented Switzerland's reputation, with many economists and the Swiss Bank Employees' Association calling for a state takeover and possible later sale of Credit Suisse. The extraordinary session of parliament on Tuesday will give lawmakers the chance to discuss whether conditions can be imposed on Credit Suisse, although the vote is largely symbolic as the state has already committed the funds and lawmakers cannot overturn the decision. Photo by Flooffy, Wikimedia commons.