ZURICH (Reuters) – Swiss monetary market regulator FINMA ordered an audit into Credit score Suisse’s dealing with of occasions resulting in its demise in 2023, when the financial institution was acquired by its longtime rival UBS, Swiss newspaper SonntagsZeitung reported on Sunday.
In keeping with the paper, FINMA is wanting on the 15 months previous to the state-orchestrated merger in March final 12 months, for which objective it mentioned near a dozen present or former workers of the 2 banks had been interviewed.
To hold out the audit of the disaster administration at Credit score Suisse, FINMA had commissioned legislation agency Wenger Plattner, which carried out the interviews, the paper reported.
That appointment adopted what the paper mentioned was a “secret” order issued by FINMA in September 2023 informing the banks that it needed to assessment how Credit score Suisse dealt with the disaster. The interviews of the employees ought to present whether or not authorities had been misled by Credit score Suisse’s then-management, the paper mentioned.
FINMA and Wenger Plattner, the Swiss finance ministry and the Swiss Nationwide Financial institution didn’t instantly reply to Reuters requests for remark. UBS declined to remark.
The investigation encompasses questions reminiscent of when it grew to become clear Credit score Suisse might not be saved, what the financial institution’s liquidity was like, how its fairness was wanting and the way its administration was normally, the newspaper mentioned.
In a report issued in December, FINMA mentioned Credit score Suisse got here near imploding months earlier than its takeover and argued for stronger powers to supervise banks.
A Swiss parliamentary committee that has been investigating how authorities dealt with the demise of Credit score Suisse is anticipated to ship its report later this 12 months.
Swiss authorities in April set out a package deal of measures – together with stricter capital necessities for UBS – geared toward stopping a repeat of the Credit score Suisse meltdown.
Parliament is anticipated to debate these proposals following the publication of the parliamentary report.
Critics of the Credit score Suisse takeover argue that Swiss authorities might have saved the financial institution going as a separate enterprise however had been sluggish to behave and may have given larger assurances that it might survive.
The authorities have defended their actions, and pointed to failures at Credit score Suisse for the collapse.
