A recent article raises questions about the actions of the Swiss Financial Market Supervisory Authority (FINMA) in relation to the Credit Suisse (CS) bank. The article suggests that the Swiss government may have favored UBS as a potential buyer for CS, leading to certain decisions being made.
The article highlights the issue of Too Big To Fail (TBTF) and suggests that the Swiss government may have misled the public regarding the effectiveness of this regime. The author points out that the US Securities and Exchange Commission (SEC) did not grant an exception permit prior to a crucial date in March, which could have affected the conversion of important buffers within CS.
Specifically, the author mentions the AT-1 capital and the Bail-in capital, which together amounted to a significant sum of 73 billion Swiss francs. The author argues that the Swiss government chose to write off the AT-1 capital instead of converting it into equity, potentially to provide UBS with enough capital for a risky transaction.
The article also suggests that the Bail-in Bonds were exempt from FINMA’s control due to being subject to US law. The author concludes that these decisions were made under pressure from foreign entities.
Overall, the article raises concerns about the transparency and decision-making process of the Swiss government and FINMA in relation to the CS bank and the TBTF regime.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | Europe |
| Countries | 🇨🇠🇺🇸 |
| Sentiment | neutral |
| Relevance Score | 1 |
| People | Urs Schnell |
| Companies | Finma, SEC, UBS, Infosperber, CS |
| Currencies | None |
| Securities | None |
