The Swiss government has announced that it will work through the crisis at the major bank Credit Suisse. A report is then generated. The results should be available within a year, it said Thursday.
Parliament had previously called for “one or more studies” to investigate the causes of Credit Suisse’s collapse so that such situations can be avoided in the future. An analysis is now planned, which should also include external reports. The Federal Council shares Parliament’s concern “that the events leading up to the acquisition of Credit Suisse by UBS and the government actions taken must be thoroughly investigated,” government representatives said.
The big bank has been rocked by scandals for two years. When the bankruptcy of the Silicon Valley Bank in the US shook up the entire banking sector and the largest shareholder no longer wanted to invest capital, the bank could no longer be held despite a cash injection from the central bank. It was then taken over by rival UBS, with government, regulator and central bank involvement.
There was and is criticism because of poor risk management and outflows of money in the hundreds of billions, among other things. Despite losses, Credit Suisse is said to have paid its top executives bonuses of about a billion francs (equivalent to about 1.01 billion euros) for the previous year.
Other Group Actions
Another class action lawsuit has now been filed against the major bank in the US – for deception. The plaintiffs allege that Credit Suisse committed securities fraud by misrepresenting facts related to the bank’s operations, activities and prospects. According to New Jersey, investors have suffered significant losses from this information. The suspects include Chairman of the Board of Directors Axel Lehmann, CEO Ulrich Körner and CFO Dixit Joshi.
The law firm is still looking for plaintiffs who want to conduct the legal dispute or act in the background. In mid-March, there were already media reports that the bank would be sued in the US. It was about the same allegations.
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.
