In a recent interview with Swiss newspaper SonntagsZeitung, former finance minister Ueli Maurer staunchly defended Credit Suisse's strategic response to the Swiss banking crisis, dismissing the notion of a temporary nationalization as impractical and unfeasible.
Maurer articulated the complexity of the scenario, emphasizing the inherent challenges associated with a sudden shift in governance where the state would be tasked with overseeing a globally active bank entangled in legal issues and facing reputational concerns on a global scale.
Maurer found himself under scrutiny for his hands-off approach to Credit Suisse in the period leading up to the bank's downfall. Criticism was particularly pointed at his December 2022 statement suggesting that the troubled bank needed to be left alone for a year or two as reported by Reuters.
Despite the backlash, Maurer stood by his belief that there existed a potential for Credit Suisse to independently navigate and resolve its pressing issues.
The narrative of Credit Suisse took a significant turn last June when it was acquired by UBS, resulting in the creation of a formidable Swiss banking and wealth management entity boasting an impressive $1.6 trillion balance sheet.
Maurer underscored the attractiveness of Credit Suisse to third parties due to its substantial equity, dispelling concerns about a potential bankruptcy.
He outlined a hierarchical responsibility structure, attributing the primary responsibility for a bank's performance to its management, followed by the board of directors, auditors, financial regulators, and ultimately, the Swiss National Bank.
While expressing a preference for Switzerland to uphold the presence of two large banks, Maurer ultimately endorsed the takeover by UBS as the most favorable and pragmatic solution.
He cast doubt on the viability of maintaining Credit Suisse as an independent entity in light of its precarious situation and historical challenges. Maurer concluded that the deal struck with UBS was not only advantageous but also minimized the likelihood of a detrimental bankruptcy scenario, emphasizing that UBS secured a favorable arrangement in the process.
But the question is: Will this be a change for the better or another block to the fall that awaits us?
04.02.2024
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