ZURICH (Reuters) – Switzerland’s monetary markets regulator FINMA has ordered an audit of Credit score Suisse’s dealing with of occasions that led to its collapse in 2023 when the financial institution was taken over by long-time rival UBS, Swiss newspaper SonntagsZeitung reported on Sunday. ) acquisition.
FINMA is investigating the 15 months main as much as the state-orchestrated merger final March, in accordance with the newspaper, which mentioned it had interviewed practically a dozen present or former staff of each banks for that function.
The Swiss Monetary Market Supervisory Authority commissioned regulation agency Wenger Plattner to conduct interviews as a part of an audit of Credit score Suisse’s disaster administration, the newspaper reported.
The appointment follows what the newspaper mentioned was a “secret” order issued by FINMA in September 2023, informing banks that it wished to evaluation Credit score Suisse’s dealing with of the disaster. The newspaper mentioned interviews with workers ought to point out whether or not authorities had been misled by Credit score Suisse’s administration on the time.
FINMA and Wenger Plattner, the Swiss Finance Ministry and the Swiss Nationwide Financial institution didn’t instantly reply to Reuters requests for remark. UBS declined to remark.
The newspaper mentioned the investigation lined points together with when it grew to become clear that Credit score Suisse might now not be rescued, what the financial institution’s liquidity was, the state of its fairness and the general situation of its administration.
The Swiss Monetary Market Supervisory Authority (FINMA) mentioned in a report launched in December that Credit score Suisse practically collapsed within the months earlier than the takeover and argued for stronger financial institution supervisory powers.
A Swiss parliamentary committee that has been investigating how authorities dealt with Credit score Suisse’s collapse is anticipated to submit a report later this 12 months.
Swiss authorities in April instituted a sequence of measures, together with more durable capital necessities for UBS Group AG, aimed toward stopping a repeat of the Credit score Suisse collapse.
Parliament is anticipated to debate the proposals following the discharge of a parliamentary report.
Critics of the Credit score Suisse takeover argue that Swiss authorities might have allowed the financial institution to proceed working as an impartial enterprise, however had been gradual to take action and may have given higher assurances of its survival.
The authorities defended their actions and pointed to the failure of Credit score Suisse as the reason for the collapse.
