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Swiss Regulator

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finance2 years ago

Swiss Regulator Demands Enhanced Powers Following Credit Suisse Collapse

Switzerland's financial regulator, the Swiss Financial Market Supervisory Authority (FINMA), has called for greater legal powers and a stronger regulatory framework following the collapse of Credit Suisse. The 167-year-old bank was rescued by UBS in March after a series of risk management failures and scandals. FINMA highlighted the need for a stronger legal basis, including the power to impose fines and more stringent rules on corporate governance. It also criticized Credit Suisse for not consistently implementing strategic changes to de-risk the bank and for recurrent scandals that undermined its reputation. FINMA conducted numerous investigations and imposed extensive measures, but now seeks extended options to have more influence on supervised institutions' governance.

via CNBC|
#corporate-governance#credit-suisse-collapse#finance
finance2 years ago

Credit Suisse's First Quarter Outflows Total $68 Billion Amid Collapse.

Credit Suisse suffered net asset outflows of $68.6 billion during the first quarter of 2023, leading to its emergency rescue by UBS. The Swiss lender posted a one-off profit of $12.43 billion due to the write-off of $15 billion of AT1 bonds by the Swiss regulator as part of the deal. The adjusted pre-tax loss for the quarter came in at $1.3 billion. Credit Suisse experienced significant net asset outflows, particularly in the second half of March 2023, which have "moderated but have not yet reversed as of April 24, 2023."

via CNBC|
#asset-outflows#credit-suisse#earnings-report
finance2 years ago

Credit Suisse Investors Sue Swiss Authorities Over Bond Write-Down

Credit Suisse bondholders, holding about $5 billion of the bank's canceled debt, have filed legal action against Switzerland's financial regulator, arguing that it violated Swiss law when it wrote down around $17 billion of bank bonds as part of UBS's rescue of the troubled bank last month. The bondholders are alleging that the total write-down was disproportionately punitive to them and violated their property rights.

via The Wall Street Journal|
#bondholders#credit-suisse#finance
finance2 years ago

Credit Suisse's Chairman Apologizes Amid Bank Run Fears and Ethics Check in Finance World

Swiss regulator FINMA has argued that allowing the bankruptcy of Credit Suisse would have resulted in deposit runs at other banks and crippled Switzerland's economy and financial center. As part of the transaction, the regulator instructed Credit Suisse to write down 16 billion Swiss francs worth of AT1 bonds to zero, while entitling equity shareholders to payouts at the stock's takeover value. The merger plan was ultimately preferred both to stabilize Credit Suisse and to prevent an overspill of the crisis into the international banking sector, FINMA argues.

via CNBC|
#bankruptcy#credit-suisse#finance
finance2 years ago

Swiss regulator considers disciplinary action against Credit Suisse.

Swiss financial regulator FINMA is considering whether to take disciplinary action against Credit Suisse managers after the bank had to be rescued by UBS. FINMA had conducted six public "enforcement proceedings" against Credit Suisse in recent years. The regulator's main focus is on "the transitional phase of integration" and "preserving financial stability". Credit Suisse declined to comment on the FINMA President's comments.

via Reuters|
#credit-suisse#disciplinary-action#finance
finance2 years ago

UBS's potential plan to end Credit Suisse's investment bank preservation raises concerns.

Swiss regulator FINMA has defended its decision to instruct Credit Suisse to write down its AT1 bonds to zero, saying it was a "viability event" triggered by the loan Credit Suisse received from the Swiss National Bank last week, backed by the federal government. The regulator's decision upended the usual European hierarchy of restitution in the event of a bank failure under the post-financial crisis Basel III framework, which ordinarily places AT1 bondholders above stock investors. Bondholders are exploring legal action over the contentious writedown.

via CNBC|
#at1-bonds#credit-suisse#finance