Bern, Switzerland-The Swiss parliament voiced its fury on Tuesday at the collapse of Credit Suisse and how the rules intended to prevent such a major bank from getting itself into trouble completely failed. At an extraordinary session of parliament called to debate the implosion of the bank and its takeover by larger rival UBS, Swiss President Alain Berset defended orchestrating the merger, saying a bankruptcy would have triggered a financial catastrophe and shredded the country’s reputation.
However, lawmakers lined up to slam the controversial March 19 deal that Berset’s government rapidly stitched together behind closed doors -- cutting out parliament and presenting lawmakers with a fait accompli.
The merger dramatically changes the financial landscape in the wealthy Alpine country, which stakes much of its national prestige on sound banking. The takeover triggered widespread unease in Switzerland at how the second-largest bank -- one of 30 around the world deemed too big to fail -- quickly imploded after a series of scandals and ill-fated.
SBP governor, secretaries attend WB and IMF spring meetings today