The Swiss voice in the world since 1935

Swiss government orders freeze on Credit Suisse bonus payments

Credit Suisse at the weekend
The government can take such action if an important bank gets state aid. © Keystone / Michael Buholzer

The Swiss government is ordering Credit Suisse to temporarily suspend certain forms of variable remuneration for its employees after the bank’s collapse and takeover by bigger rival UBS.

This relates to already granted but deferred remuneration for the financial years up to 2022, for example in the form of share awards, according to a government statement on TuesdayExternal link. It has also asked the finance ministry to propose further measures on variable remuneration for the financial years up to 2022 and thereafter.

Switzerland’s Banking Act stipulates that the government “shall impose remuneration-related measures if a systemically important bank is directly or indirectly granted state aid from federal funds,” says the statement.

Last week a CHF50 billion ($54 billion) liquidity backstop from the Swiss National Bank (SNB) failed to stop a crisis of confidence in already troubled Credit Suisse.

A weekend of high drama ended with UBS agreeing to buy Credit Suisse for CHF3 billion, well-below its closing share price on Friday. 

The Swiss central bank will smooth the transaction by providing CHF100 billion in liquidity to UBS and Credit Suisse during the takeover. The government has agreed to absorb up to CHF9 billion of potential UBS losses.

Popular Stories

Most Discussed

News

Federal Council proposes restrictions on S status

More

Swiss government proposes restrictions on Ukrainian refugees

This content was published on Only those whose life and limb are at risk in Ukraine and who flee to Switzerland are to be granted S status in future. The remaining Ukrainian refugees should apply for asylum. This is what the Federal Council is proposing.

Read more: Swiss government proposes restrictions on Ukrainian refugees
6.4 million loan for the Château de Gruyères voted in Fribourg

More

Gruyères castle gets public funds for renovation

This content was published on The Fribourg parliament approved a sum of CHF6.4 million to renovate the ramparts, the walkway and the towers, as well as to replace the exterior lighting.

Read more: Gruyères castle gets public funds for renovation
Increasing rental housing listings, but not placating demand

More

Swiss rental housing listings increase for the first time in three years

This content was published on For the first time in three years, the number of advertisements for rental accommodation is on the rise, but this does not dampen demand, quite the contrary. In Ticino, the average duration of an advertisement published on the main portals is 30 days.

Read more: Swiss rental housing listings increase for the first time in three years
Child vaccination rates are stagnating in many countries

More

Switzerland doing relatively well when it comes to child vaccination rates

This content was published on Progress in child immunisation has stalled. For decades, the number of children vaccinated against measles, polio and other diseases has risen. But since 2010, vaccination rates have stagnated in many countries, according to a study.

Read more: Switzerland doing relatively well when it comes to child vaccination rates
Human remains found in Blatten VS

More

Human remains found in buried Swiss village

This content was published on Human remains were found and recovered on Tuesday as part of a search operation in the buried Valais mountain village of Blatten. Formal identification is underway, according to the Valais cantonal police.

Read more: Human remains found in buried Swiss village
Lakes in Central Switzerland have the best bathing water quality

More

Lakes in Central Switzerland have best water quality for bathing

This content was published on Anyone who swims in a lake in Central Switzerland need have no fear of infection from intestinal bacteria. The water samples taken at 65 bathing sites in 13 lakes all have good to excellent bathing water quality.

Read more: Lakes in Central Switzerland have best water quality for bathing

In compliance with the JTI standards

More: SWI swissinfo.ch certified by the Journalism Trust Initiative

You can find an overview of ongoing debates with our journalists here . Please join us!

If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.

SWI swissinfo.ch - a branch of Swiss Broadcasting Corporation SRG SSR

SWI swissinfo.ch - a branch of Swiss Broadcasting Corporation SRG SSR