He stressed that had it not been for the bailout deal, Credit Suisse would have gone bankrupt
The Vice-President of the Swiss Central Bank, Martin Schlegel, confirmed in an interview with the Swiss station SRF, that if it had not been for the emergency rescue operation last month, the bank “Credit Suisse” would have declared bankruptcy and most likely caused a global financial crisis.
These comments highlight the precarious position Credit Suisse was facing before it agreed to a 3 billion Swiss franc takeover of UBS, at a time when global markets were fragile due to the failure of 3 banks in the US.
It is worth noting that the deal took place without the approval of “Credit Suisse” or “UBS” shareholders due to the need to conclude it quickly to save the troubled bank.
It is noteworthy that the Federal Prosecutor’s Office in Switzerland said that it had opened an investigation into the acquisition of “UBS” bank of its smaller competitor “Credit Suisse” with the support of the state.
The public prosecutor is looking into possible breaches of the country’s criminal code by government officials, regulators and executives of the two banks that agreed to carry out an emergency merger last month to avert a collapse in the country’s financial system.
The office said in a statement that there were “numerous events hovering around Credit Suisse” that called for the investigation to be opened and required to be analyzed “to determine whether there are any criminal offenses that could fall within the (public prosecutor’s) jurisdiction.”
