Switzerland Today
Dear Swiss Abroad,
Do you remember where you were this day a year ago when news broke that UBS was buying Credit Suisse for CHF3 billion ($3.38 billion)? Me neither. One prominent Swiss paper says the collective amnesia is bad news for Switzerland, because it has some important clean-up to do. That and more news from Switzerland in today’s briefing from Bern.
In the news: Putin loses the popular vote in Switzerland, Bern takes a stand against impunity in Iran, and Swiss researchers regain access to some EU programmes
- He may have won 87% of the vote in last weekend’s presidential election in Russia, but President Vladimir Putin fared poorly at the polls in Geneva and Bern, garnering just 20% and 16% support, respectively, from Russians who cast their ballots at the Russian representations in the two Swiss cities.
- Switzerland was among 54 countries to sign a joint statement in Geneva on Monday condemning the “deteriorating” human rights situation in Iran and calling on the authorities to “put an end to impunity”.
- The largest drone show ever staged in Europe has won its producer, Groupe F Suisse, an international award for its innovation and creativity. The “ballet” performed by nearly 1,400 drones equipped with coloured LEDs in Geneva last May lit up the sky for three 23-minute evening shows.
- The first day of negotiations on an agreement governing relations between Switzerland and the European Union has already borne fruit. Swiss researchers can once again participate in the European Research Council’s Advanced Grants 2024.
Taking stock of the demise of Credit Suisse one year on
Exactly a year ago today, the Swiss government made the bombshell announcement that UBS would buy up its rival Credit Suisse in an emergency rescue mission. March 19, 2023 was a “dark day” for the Swiss financial sector, saysExternal link the daily Le Temps, as it marked the end for a storied 167-year-old bank that had made an enormous contribution to the country’s economic development.
Former Credit Suisse board member Alexandre Zeller lamentsExternal link on Swiss public radio RTS the demise of “an absolutely excellent [bank] with competent staff, and which never had major difficulties”. But it suffered the consequences of activities that “maybe were too risky, notably in investment banking”, he added.
Le Temps’ recollection of events leading up to March 19, 2023 is decidedly sharper: a string of scandals, bad strategies, too much risk-taking, and managers with questionable ethics, all brewing under extremely volatile financial market conditions.
But unlike the grounding of Swissair in 2001, which is burnished in the collective memory, there’s no sign that the Swiss people suffered a major trauma a year ago, writesExternal link the Neue Zürcher Zeitung. It’s hard to imagine a run on Credit Suisse memorabilia just as there was with Swissair artifacts, the paper adds. Its demise did not even lead to tears or a show of solidarity with Credit Suisse staff. The image of the entitled banker who never admits to any guilt and continues to earn a bonus may have something to do with it, the Zurich daily points out.
If there’s been a lack of soul searching after the event, it may be that, as Zeller tells RTS, the financial industry is already the most regulated in the world. For him, what matters most is the quality of leadership: “In the end, the responsibility of having institutions that manage their affairs correctly rests with the board and senior management”.
UBS, it turns out, has got this part right. One of the main reasons the takeover has gone smoothly so far is that it’s being led by two very experienced bankers, CEO Sergio Ermotti and president of the board Colm Kelleher, analyst Andreas Venditti tells Le Temps. Critically investors have confidence in both men.
But the takeover process is far from over. In absorbing Credit Suisse, UBS has already cut 17,000 jobs worldwide, with more saving measures to come – it expects to lay off 3,000 staff in Switzerland. The bank must also complete the legal fusion of the two entities at home and abroad. To do this, it needs to get the green light from 70 regulatory authorities in 50 countries, Le Temps reports.
The size of UBS in Switzerland is also leading to questions about the state of competition in the nation’s banking sector. A parliamentary committee investigation into the demise of Credit Suisse is to report back later this year – and perhaps trigger a belated reckoning with lessons learned.
New artist-in-residence named in ‘Area for Swiss Abroad’ programme
Edinburgh-based Nat Cartier has received an art scholarship to pursue music projects at the ‘Area for Swiss Abroad’ in central Switzerland this summer.
The ‘Area for Swiss Abroad’, officially a 5,000 square-metre meadow, sits on a peninsula in Brunnen on Lake Lucerne, opposite the Rütli. It offers a view of the mountains of Uri and the Rigi. This symbolic site is managed by a foundationExternal link of the same name that began awarding scholarships in 2016. Its aim is to give young Swiss artists living abroad the chance to draw inspiration from the location and its symbolism as “artists in residence”.
After being suspended in 2017 due to a lack of funds, the programme is back this year, with the jury selecting Cartier, a musician with Swiss roots living in Edinburgh, from the pool of applicants. He will be working in Brunnen from July 13 to August 18.
According to the press release, Cartier is into modern music genres. “After emigrating, he wants to rediscover Switzerland and raise awareness of what you miss when you live abroad,” says the foundation. Cartier also plans to collaborate with local artists during his summer residency.
Reporting on ‘Area for Swiss Abroad’ by Balz Rigendinger
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