Swiss Parliament Criticizes Finma Over Credit Suisse Collapse, UBS to Hold $20B More Capital

Dec 20, 2024, 10:05 AM

The Swiss parliament has issued a strong critique of the former leadership of Switzerland's financial regulator, Finma, following a comprehensive inquiry into the collapse of Credit Suisse last year. The inquiry highlighted years of mismanagement at Credit Suisse and pointed out the chaotic period leading up to its emergency acquisition by UBS. UBS has stated that as a result of the acquisition, it is required to hold around $20 billion in additional capital. In response to the report on Credit Suisse's collapse, UBS has expressed support for most of the recommendations made by the Federal Council to strengthen the resilience of the financial center. Switzerland is now moving to bolster its financial regulation, with lawmakers proposing over 30 reforms for bank oversight. Finma has acknowledged the criticism from the parliamentary committee and plans to enhance its supervision and apply lessons learned from the Credit Suisse collapse. Finma also supports the proposed expansion of its authority.