Expensive CS rescue: The National Bank gives cash in return for “bankruptcy privilege” – but that’s not worth much and is still dangerous
The National Bank only lends money against collateral. This was not the case with the CS rescue. This encroached on the SNB’s independence and tarnished its relationship with the Federal Council.
Bad mood: National Bank President Thomas Jordan and Finance Minister Karin Keller-Sutter.
Image: Peter Klaunzer / Keystone
Suddenly everything had to happen very quickly: Credit Suisse urgently needed cash, which is why she knocked on the door of the National Bank. This can grant banks extraordinary liquidity assistance in emergencies, ELA for “Emergency Liquidity Assistance”. However, the National Bank only grants such emergency loans against collateral, namely against Swiss mortgages or pledged securities.
