The finance minister has hit out at banking giants UBS and Credit Suisse for what she described as an “incomprehensible” response to a proposed new banking law.
This content was published on
1 minute
swissinfo.ch and agencies
In an interview published in the Neue Zürcher Zeitung on Saturday, Eveline Widmer-Schlumpf called on the banks to provide a detailed explanation of their response provided to a commission examining the proposed law.
She said figures provided by the banks did not reflect “reality”, and were incomprehensible “not only for me.”
“In politics, it often happens that propositions lacking in clarity are put forward when one wants to delay something,” Widmer-Schlumpf told the newspaper.
The government was forced to bail out UBS at the height of the financial crisis in 2008.
It has proposed a law which would force UBS and Credit Suisse, considered “too big to fail”, to build up a total capital equity ratio of 19 per cent, which is above the minimum set by the Basel III global standard.
The banks have questioned whether the rule would apply to subsidiaries.
“I remain convinced that in a free market economy it is not acceptable that two major banks can run risks for which they don’t take responsibility because of state guarantees,” Widmer-Schlumpf said.
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.
Read more
More
Cabinet insists on tougher banking rules
This content was published on
Presenting the bill to be submitted to parliament, Finance Minister Eveline Widmer-Schlumpf told journalists that the set of strict crisis measures was necessary because of the vital role of the banking giants UBS and Credit Suisse for the Swiss economy. The government was forced to bail out UBS at the height of the financial crisis…
This content was published on
But delegates at the International Monetary Fund (IMF) meeting left it uncertain how far they would go in changing their domestic policies in response to international pressures. They also expressed concern that “significant risks” still threatened the recovery. While Swiss Finance Minister Eveline Widmer-Schlumpf urged highly indebted developed countries to “pursue credible fiscal consolidation”, she…
This content was published on
Chief Executive Oswald Grübel again waived his bonus and the bank’s top earner saw his pay slashed with a greater portion of variable pay hinging on long-term targets. But some staff and shareholders remain unimpressed. With political and public pressure on “fat cat” bonuses showing little sign of relenting, the announcement of UBS’s compensation statistics…
This content was published on
Over the past few years, UBS has garnered a lot of negative press. Extraordinary general assemblies and public protests have been occuring with increasing frequency.
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.