Karin Keller-Sutter also explained the need to find a quick solution to the entity’s problems.
The minister of Finance Swiss, Karin Keller-Sutter, defended the fusion of the two largest banks in the country in an interview published on Saturday by the local newspaper Neue Zuercher Zeitung, stating that the use of a emergency law it was necessary for stabilize the situation.
“Credit Suisse would not have survived Monday”said Keller-Sutter, explaining the need to find a quick solution to the entity’s problems. “Without a solution, CS payment operations in Switzerland would have been significantly affected disturbedpossibly even collapsedand the salaries and bills could no longer have been paid,” he said.
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EARTHQUAKE. The fall of Credit Suisse in Switzerland coincided with that of Silicon Valley Bank in the US and put the market on alert.
Last Sunday it was announced that UBS had agreed to buy Credit Suisse by 3 billion Swiss francs ($3.23 billion) in shares and agreed to take up to 5 billion francs ($5.4 billion) in losses, in a merger engineered by Swiss authorities to prevent further turbulence in the global banking market.
It was resorted to emergency law so that the banks could reach a quick agreement. Shareholders, who would normally have a say in such an acquisition, were largely ignored, angering some of them.
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keller sutter claimed that the Executive Federal Council of the Swiss Government “only got as far as it was absolutely necessary to achieve the objective of stabilization”. “If we had done nothing, CS shares would have been worth nothing on Monday and shareholders would have gone home empty-handed,” he said.
The president of the Swiss National Bank, Thomas Jordansaid this week that the acquisition of Credit Suisse by UBS it is not in doubt and will not need further liquidity support from the central bank to be carried out. “It is a closed deal, there is a full commitment from UBS to acquire Credit Suisse”Jordan told Reuters in an interview on Thursday.
Source: Ambito
