In Switzerland, attempts are being made to work through the banking crisis. Meanwhile, US President Biden does not expect a worse crisis.
Zurich/Washington. A week after the bank deal for the takeover of Credit Suisse (CS) by UBS, which came about under the direction of the Swiss government, the processing of the events is in full swing. Finance Minister Karin Keller-Sutter commissioned an initial analysis. The Swiss financial market supervisory authority Finma hopes for stricter instruments.
The Minister of Finance said in interviews over the weekend that one should not go back to business as usual and must also consider internationally how to deal with globally active banks in such situations. Last week she commissioned banking professor Manuel Ammann from the University of St. Gallen to carry out an analysis. In addition, she is considering making a corresponding application herself in the upcoming special session of Parliament. However, she spoke out against a parliamentary commission of inquiry (PUK) called for by several parties.
In interviews, the Finance Minister once again defended the takeover as the best of all solutions. A state takeover or disorderly bankruptcy would have posed far greater risks for the state. Meanwhile, the Swiss politician Gerhard Pfister has called for a higher equity ratio for banks. “It needs an equity ratio of 20 percent, which is considered reasonable by various renowned experts,” said the President of the Swiss Mitte party in an interview with the “SonntagsBlick”.
The lack of equity capital is the core of the problem. “Too little equity brings risks that we can no longer expect of the taxpayers.” The idea is not new and has been demanded by the left. “In politics, we have to stop rejecting an idea simply because it comes from a political opponent,” said Pfister. The banks would also have to change their minds: “On Sunday you demonize the state and on Monday you call on it. This mentality no longer works, which is why I appeal to those responsible in business to express themselves more differentiated about the role of the state in the future,” said Pfister.
USA: Biden calms down
Meanwhile, given the turbulence in the US banking sector, President Joe Biden tried to ease the situation. “I think it will take a while for things to settle down, but I don’t see anything on the horizon that’s about to explode,” Biden said on Friday (local time) during a visit to neighboring Canada. He understands that there is uneasiness. “These mid-tier banks need to be able to survive, and I think they will.”
He indicated that the US government would take further action if necessary. In the past few weeks, three banks have collapsed in the United States. (sda/ag.)
