The GPK has numerous questions after the CS debacle

After the CS debacle, the Audit Committee of the Council of States (GPK-S) becomes active. It allows clarification as to whether the actions of the federal authorities were lawful, expedient and effective. The focus is, among other things, on the Financial Market Authority (Finma).

At its first meeting since the forced takeover of CS by UBS, the GPK-S decided on initial clarifications, as the parliamentary services announced on Friday. The behavior of the authorities should therefore be examined.

According to the parliamentary supervisor, “various questions” arise, namely on supervision and implementation of the existing legislation, on previous supervision of the banks concerned, on examining alternative solutions, on the application of emergency law and on risk management by the federal government.

Federal councilors are heard

According to the announcement, the GPK-S has commissioned two of its sub-committees to clarify various issues by the beginning of May 2023. Among other things, the hearings of both parliamentary business control commissions must be attended in May Finance Minister Karin Keller-Sutter, Justice Minister Elisabeth Baume-Schneider, FINMA President Marlene Amstad and Thomas Jordan, Director of the Swiss National Bank (SNB).

As early as next week, the GPK-N will deal with the CS topic. At the end of May, a decision should be made by both GPK on how to proceed, as stated in the message. The “stance on a possible Parliamentary Inquiry Commission (PUK)” should also be decided.

The party reactions to the CS debacle so far have shown that the SVP, the SP and the Greens are open to demanding a PUK. In particular, the role of the financial market regulator Finma must be reviewed.

Extraordinary session in mid-April

Parliament will from April 11th to 13th in an extraordinary session comment on the takeover of CS by UBS and the financial guarantees granted by the federal government. There is also a call for the “too big to fail” rule to be revised.

Several cantons and business associations have expressed concern over the past few days about the possible impact on jobs, tax revenue and cultural sponsorship. On Monday, the Swiss Commercial Association repeated demands from the Swiss Trade Union Confederation (SGB) and the Bank Staff Association for the involvement of the social partners in the merger of the two big banks. The takeover must be as socially acceptable as possible, and as many jobs as possible should be retained. (aeg/sda)

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