The merger bank created after the acquisition of Credit Suisse by UBS is too big for Switzerland. Roger Nordmann, leader of the Social Democratic Party, said this on Monday. That party is the second largest in the Swiss parliament and is part of the government coalition.

”The new UBS is a huge risk, ” Nordmann said.  “That bank will soon have more than 1500 billion francs (converted into more than 1511 billion euros) in assets and is simply too big for Switzerland.” If UBS were in trouble, the Swiss central bank SNB and the Swiss government would not have enough resources to prevent a downfall.

In addition, Switzerland and the SNB have already committed 209 billion francs to prevent the collapse of Credit Suisse and to enable the takeover by UBS. “It’s a huge risk.”

Nordmann wants more separation between the consumer branch of banks and commercial banks and asset managers. The latter types of banks are at greater risk.

Credit Suisse is simply paying bonuses to its staff this year. The board of the bank will write this in a memo to all employees on Monday. Many staff members will receive an annual bonus later this month. But performance bonuses will also be paid this year, according to the troubled bank.

Credit Suisse says it will comply with all applicable wage agreements. The bank makes a reservation. The Swiss government can still intervene in the performance bonuses.

The acquisition of Credit Suisse is not expected to be completed until the end of the year. Until then, Credit Suisse will continue to work as much as possible as if it were ‘business as usual’.

The acquisition of Credit Suisse by UBS – which is headed by former ING director Ralph Hamers – was finalized this weekend. Credit Suisse had been in trouble due to a series of scandals and reports that more and more customers were taking their money away from the bank. The financial markets were already strained by the toppling of the American Silicon Valley Bank.

Load More Related Articles
Load More In Business

Leave a Reply

Your email address will not be published. Required fields are marked *

Check Also

Swiss crypto custody platform Metaco has been acquired by Ripple

The recent collaboration between Ripple and Metaco has sparked excitement in both the XRP …