Despite the emergency takeover of the bankrupt bank Credit Suisse by its major rival UBS, the bankrupt bank wants to pay out about one billion euros in bonuses, the newspaper reports. But the Swiss government is now putting an end to that – at least in part.
“The Bundesrat has taken note of the fact that the Federal Ministry of Finance (FDF) has issued a decree to the Credit Suisse temporarily suspended certain variable remuneration for its employees, the government announced on Tuesday. In other words, variable bonus payments are temporarily frozen. This has consequences for already committed but deferred compensation for the financial years up to 2022, such as share rights, was explained in more detail. The government also wants to investigate further measures regarding variable remuneration for the financial years up to and including 2022.
How the state helps
According to the law, such a measure can be imposed if government support is used. To avoid a fire and a global financial crisis in view of the nervousness in the banking industry, the government and regulators pressed for the acquisition of UBS. It pays three billion francs (2.97 billion euros) for Credit Suisse and is responsible for losses of up to five billion francs. In addition, there is a state loss guarantee of nine billion francs and liquidity commitments of up to 200 billion francs.
What will happen to the Credit Suisse brand?
The time horizon for the merger with UBS would be completed by the end of 2023. There is currently little clarity about the concrete details of the takeover, which came about on Sunday evening after massive pressure from the Swiss authorities. UBS announced on Sunday that it wants to “welcome our new customers and our new colleagues” in the coming weeks. It is not yet known whether the brand Credit Suisse will completely disappear in the future.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
