Swiss President in favor of Credit Suisse-UBS merger

Alain Berset, president of Switzerland, was positive regarding the plan to save the banking institution

The Swiss government defended its role in bailing out Credit Suisse Group through its takeover by rival UBS, saying intervention to prevent the collapse of the country’s second-biggest bank was necessary to avoid “disastrous” consequences.

“The Federal Council was forced to intervene to maintain stability both in Switzerland and internationally and to protect the economy”, President Alain Berset said during a special session of parliament in the Swiss capital Bern.

The Swiss Parliament will examine for three days from this week the government’s actions in the rescue of Credit Suisse, which crystallized on March 19 in the acquisition of the entity by UBS Group. The move, described by Berset as the best option to restore confidence in the markets, creates a banking giant whose assets are more than twice the size of the Swiss economy.

Parliament, like the shareholders, had no say in the agreement, although it was signed by a small group of high-level parliamentarians, the so-called financial delegation, so the transaction cannot be reversed.

At Credit Suisse’s general shareholders’ meeting last week, the bank’s top management apologized for failing to prevent the collapse of the 167-year-old entity, saying the hasty merger with UBS represented the only alternative for avoid a catastrophe, not only for Switzerland, but for the world economy.

K. Tovar

Source: Notiamerica

(Reference image source: Le Temps)

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