Since the Swiss government went above and beyond last month to expedite a rescue of Credit Suisse, a storm has been developing in the usually peaceful nation.
The shotgun marriage, in which Credit Suisse was acquired by rival UBS for $3.3 billion and supported by more than 250 billion francs in guarantees and backing, has drawn criticism from a number of Swiss lawmakers.
They will hold an unusual meeting in Bern on Tuesday to address the collapse of Credit Suisse and the government’s open chequebook response.
The extraordinary occurrence—the third such session in more than twenty years—gives parliament the opportunity to reject the sizeable loans provided as part of the rescue package.
However, because the state has already committed the funds and MPs are unable to reverse that decision, the vote is primarily symbolic.
To the chagrin of the over 250 lawmakers who were left without a say, a sub-group of six MPs authorised the financial commitment on behalf of the parliamentary body prior to the announced merger.
Celine Widmer, a member of the Swiss National Council for the left-leaning Social Democrats, stated, “It’s the responsibility of politics to have a say especially when such a big contribution is being made by state and emergency law is being used.”
She told British news agency Reuters, “We have a lot of questions that need to be answered.
Switzerland stated this week that it will reduce incentive payouts to Credit Suisse’s senior executives.
According to centre-right FDP party chairman Thierry Burkart, “We demand a thorough investigation into how the Credit Suisse crisis could have occurred.”
“The de facto state guarantee of the systematically important banks is a big problem.”
Politicians were not the only ones in Switzerland who were upset by Credit Suisse’s rescue. According to a survey by the political research firm gfs.bern, the majority of Swiss people oppose the agreement.
According to a survey of Swiss economists, almost half of them believe that UBS’s acquisition of Credit Suisse was not the best course of action and warn that the scandal has damaged Switzerland’s reputation.
The 167 university economists questioned by Switzerland’s KOF economic research institution revealed that 48% of them favoured a state takeover and potential eventual sale of Credit Suisse.
Additionally, there are mounting concerns of a personnel purge.
The Swiss Bank Employees’ Association demanded on Tuesday that Credit Suisse and UBS halt any layoffs in an open letter to the nation’s legislature.