‘Credit Suisse could not have lasted a day longer’

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‘Credit Suisse could not have lasted a day longer’

The Swiss government actually had no choice but to take over Credit Suisse Group AG, because the bank could not have survived another day. This has been said by Swiss Finance Minister Karin-Keller Sutter, reports Bloomberg.

The Swiss government actually had no choice but to take over Credit Suisse Group AG, because the bank could not have survived another day. This has been said by Swiss Finance Minister Karin-Keller Sutter, reports Bloomberg. (ANP / AFP)

“Credit Suisse would never have survived Monday,” Keller-Sutter told the Swiss newspaper NZZ. “Without a solution, payment transactions with Credit Suisse would have gone completely wrong.”

Had the bank actually collapsed, the economic impact would probably have been twice as large as the entire Swiss economy, experts estimate. “We could have assumed a new global financial crisis if Credit Suisse had collapsed, because the fall would have dragged other banks down with it.”

Criticism

Last week’s Swiss government-orchestrated takeover of Credit Suisse by UBS has been widely criticized for failing to consider investor rights and putting Swiss taxpayers at even greater risk should another crisis loom. According to Minister Keller-Sutter, the alternatives were even riskier: ‘A temporary nationalization of Credit Suisse might have taken longer than the government wanted, because experience shows that it can take decades for a government to get rid of its interest in a bank. can do.’

‘No rescue operation’

According to Keller-Sutter, the takeover was not a government bailout, “because no money was flowing to the bank from government finances.” She did admit, however, that the guarantees on deposits are comparable to an insurance policy, and that there is therefore indirect state support.

The minister also dispelled rumors that the United States was pressuring Switzerland to rescue Credit Suisse. “It’s not like Janet Yellen (the US Treasury Secretary, ed.) Was on the phone telling us to get UBS to buy Credit Suisse.”


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