Swiss financial sector regulator Finma admitted this Sunday that it is examining the possibility of holding Credit Suisse administrators accountable for mismanagement that led to the bank’s collapse.
“We are not a judiciary, but we are looking into the possibility of prosecution,” said Marlene Amstad, President of Finma, in an interview published this Sunday in the Swiss Sunday newspaper NZZ am Sonntag, in which she was very critical of the activities of the management of this bank .
Now for Amstad, the capital and liquidity requirements of UBS, the financial institution that acquired Credit Suisse, must gradually increase to address concerns that the size of the institution will be out of proportion to its current liabilities.
UBS’s acquisition of Credit Suisse comes after a turmoil experienced by US banks that forced investors to sell securities from institutions seen as weak links in the banking system, such as Credit Suisse, which had been in trouble for two years.
“Clearly the social media storm is not the cause of Credit Suisse’s problems,” Amstad said, referring to the fact that Credit Suisse chairman Axel Lehmann accused the media of helping to sink the bank.
“The problem is rooted in several scandals and management mistakes in recent years. The bank was already going through a reputational and credibility crisis,” Amstad said, recalling that Credit Suisse’s troubles were not limited to one business sector, but rather “reflected a largely insufficient risk culture.”
The head of the Swiss financial sector regulator admits that Credit Suisse has a very large number of employees who did their job seriously and correctly.
“In the end, the bank failed due to many scandals and bad decisions made by the management. The bank’s management has been pursuing a high-risk strategy for a long time without being able to properly manage these risks,” Amstad analyzed. .
“Insufficient corporate culture and strategic management errors cannot be completely eliminated by strong regulation,” President Finman concluded.
Author: Portuguese
Source: CM Jornal
I’m Sandra Hansen, a news website Author and Reporter for 24 News Reporters. I have over 7 years of experience in the journalism field, with an extensive background in politics and political science. My passion is to tell stories that are important to people around the globe and to engage readers with compelling content.