Against managers and authorities
Prosecutors are investigating the Credit Suisse takeover
April 2, 2023, 6:20 p.m
In a rush, the big bank UBS swallows the stumbling Credit Suisse. Swiss prosecutors are now checking whether all laws are being followed. Apparently, they are targeting executives at both banks as well as government officials.
The Swiss Federal Prosecutor’s Office has initiated investigations in connection with the takeover of the scandalous bank Credit Suisse (CS) by the major bank UBS. “The federal prosecutor’s office has taken note of the media coverage of the events surrounding CS over the past few days and has made an assessment of the situation with all the internal departments involved,” the authority said. “In addition, contact was sought with national and cantonal authorities. Investigation orders were also issued,” it said.
The federal prosecutor stated that they wanted to fulfill their responsibility to “contribute to a clean financial center in Switzerland”. It is about “analyzing and identifying” possible crimes, it said. “In this context, various internal and external bodies were commissioned or contacted with the aim of clarifying and collating information.” According to a report by “Financial Times” Investigators are investigating possible violations of the law by government officials, regulators and executives at both banks.
The short-term takeover of the ailing Credit Suisse by the largest Swiss bank UBS for around three billion Swiss francs was announced on March 19. According to the Swiss government, this was the best solution to restore lost trust. The second largest Swiss bank, like UBS, is considered systemically important, but has been shaken by scandals for two years. Among other things, it is said to have enabled money laundering and helped criminals and controversial or corrupt politicians and officials to conduct their business. Massive losses followed, dwindling customer and investor confidence and finally financing problems.
When the bankruptcy of the Silicon Valley Bank in the USA shook the entire banking sector and the largest shareholder no longer wanted to invest any more capital, Credit Suisse could no longer be held despite a cash injection from the central bank. In Switzerland, the takeover of Credit Suisse is very controversial because it creates an even larger financial institution. The Swiss financial regulator Finma is investigating whether and how Credit Suisse managers can be held accountable. Parliament wants to decide in April whether to set up a committee of inquiry.