An HSG professor appointed by the finance department to analyze the CS debacle is also doing research with CS funds.
The case of the major bank Credit Suisse raises questions. How did it come to this, what legal means will the federal government need in the future to prevent another bank from stumbling or at least to minimize the damage to the economy.
Keller-Suter hires controversial HSG professor
Parliament is not the only one who wants answers with a special session and a parliamentary commission of inquiry PUK. Federal Councilor Karin Keller-Suter also wants answers. She explained that in the Saturday broadcast of Radio SRF.
On Tuesday, she commissioned Professor Manuel Ammann from the University of St. Gallen (HSG) to draw up an overview, says Keller-Suter. “First of all, Ammann should describe what happened here, how the bank was able to get into this crisis of confidence and what questions arise from this, so that we can also adapt the legislation.”
No matter how well the scientist can work, he becomes vulnerable.
However, the choice of Ammann is not without controversy, because the question arises as to how independent this expert is. Ammann is an expert in the banking sector, he also deals with the “Too Big To Fail” rules, which are currently being intensively discussed. But Manuel Ammann is also the academic director of the “HSG Center for Financial Services Innovation” at the University of St. Gallen. The founding and strategic partner of this center is Credit Suisse with a financial commitment of CHF 20 million.
The order is still unproblematic, writes the finance department at the request of Radio SRF. Ammann is characterized by great expertise and knowledge of the Swiss financial center. His scientific mission is not called into question by the funding of the institute.
Not everyone is so carefree about Ammann’s research funding
When asked, Manuel Ammann himself writes that the takeover of CS by UBS is an extraordinary and drastic event for the financial center and Switzerland and raises important questions. “For this reason, I see it as my duty when I am asked by the Federal Council. As always, my contribution will be made from an independent, scientific perspective,” assures Ammann. The center co-financed by CS is not involved in the study, but the Institute for Banks and Finance.
Markus Müller, professor of constitutional law at the University of Bern, has a problem with this award. Professorships at universities that are co-financed by industry are a thorn in his side.
Legend:
Professor Markus Müller is professor for constitutional and administrative law as well as public procedural law at the University of Bern. He has doubts about Ammann’s election. Despite the differentiation between the institutes, the problem is becoming more acute.
SRF
«The scientist can do very good work, to the best of his knowledge and belief. But he still becomes vulnerable because it is simply assumed: You are dependent, and the scientist cannot refute this assumption.”
Many decisions are made unconsciously, by the scientist who writes the report, but also by those who later read it, such as the Federal Council and Parliament, explains Müller. So the question remains as to why the finance department chose Manuel Ammann despite the possible concerns. The FDF explains that this report will only be part of the overall analysis of the Credit Suisse case.