The House of Representatives of the Swiss Parliament rejects public aid for savings today Credit Suisse and that bank UBS agree to purchase this facility before its foreseeable collapse, in a vote where he moved away from the position adopted by the Senate hours before the measure was approved.
Decision must now return to the Upper Housebut even if its members now change their minds and reject the loan package, it will not have much effect or be applied retroactively, as the aid has been formally committed and authorized by an emergency procedure by a Parliamentary Finance Delegation.
For this reason, parliamentary meetings were perceived as an opportunity for deputies to express themselves first and foremost. They did so by rejecting, by a vote of 71 to 102, the € 100,000 million loan offered by the Swiss Confederation and the € 9,000 million guarantee against loss.
The attitude adopted by the deputies was understood as follows: disapproval of the government’s handling of the Credit Suisse crisis, Its bankruptcy would have unforeseen consequences for the entire Swiss banking system.
During the discussion, he was reminded that there was a solution to the concept of “too big” in 2008 – when the State was forced to come to the aid of UBS, which was dragged to the brink of the abyss by that year’s financial crisis. (too big to fail) was requested, and it was considered too troublesome.
According to this, UBS and Credit Suisse were part of about thirty banks that are systemically important to the world economy, and therefore they could not fail by any means.
Several parliamentarians thought that there should be no banks in Switzerland that fell into this category. In other interventions, some speakers supported a review of the “too big to fail” regulation, and others called for strengthening the powers of the Swiss financial market supervisory body.
The most repeated comments were directed at Credit Suisse executives who did not know how to propose solutions to the bank’s multiple problems.from persistent lawsuits that forced him to pay billions of dollars in fines in recent years, to corruption scandals involving his collaborators.
The previous day, the Upper House of the Swiss Parliament approved the financial guarantee offered by the state in the Credit Suisse case, and will now reconsider the issue after the rejection decision in the Lower House.