Credit Suisse rescission emergency session at Swiss parliament. Switzerland has been roiled since last month’s frantic rescue of Credit Suisse (CSGN.S).
Many Swiss politicians have criticized the shotgun marriage between Credit Suisse and UBS (UBSG.S) for 3 billion Swiss francs ($3.3 billion) and 250 billion francs in guarantees and backing.
On Tuesday, they’ll address Credit Suisse’s collapse and the government’s open-checkbook reaction in Bern.
The third session in almost twenty years allows parliament to reject the hefty bailout package financing.
But, lawmakers cannot reject the state’s funding commitment, so the vote is mostly symbolic.
A subgroup of six parliamentarians approved the financial pledge on behalf of the parliamentary body before the merger, angering the almost 250 MPs left without a say.
“It’s the obligation of politicians to have a voice especially when such a substantial contribution is being made the state and emergency law is being invoked,” said Social Democratic Swiss National Council member Celine Widmer.
“We need answers,” she told Reuters.
Roland Fischer, another legislator, added, “We can feel Swiss rage and irritation.” “We could reject it, but that would be illegal.”
On Tuesday, lawmakers will debate Credit Suisse’s terms and the hasty rescue deal.
Switzerland reduced Credit Suisse executives’ bonuses last week.
“We need a thorough examination into how the Credit Suisse catastrophe might have come about,” Thierry Burkart, head of the center-right FDP party, told Tages-Anzeiger.
“The de facto governmental guarantee of systematically significant banks is a serious concern.”
Credit Suisse’s bailout enraged lawmakers and many Swiss. Political research firm gifs. Bern reported that most Swiss opposed the transaction.
About half of the Swiss economists say UBS’s purchase of Credit Suisse was a bad idea, tarnishing Switzerland’s reputation.
48% of 167 university economists surveyed by Switzerland’s KOF economic research institution favored a governmental takeover and sale of Credit Suisse.
Staff cuts are also a concern.
On Tuesday, the Swiss Bank Workers’ Association demanded that Credit Suisse and UBS halt job layoffs in an open letter to parliament.
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