Credit Suisse rescue rebuked by half of Swiss parliament
Switzerland’s lower house of parliament has issued a searing — though symbolic — rebuke of an emergency plan spearheaded by the executive branch to prop up embattled Credit Suisse and shepherd it into a takeover by Swiss banking rival UBS
GENEVA (AP) — Switzerland's lower house of parliament issued a searing — though symbolic — rebuke Wednesday of an emergency plan spearheaded by the executive branch to prop up embattled Credit Suisse and shepherd it into a takeover by Swiss banking rival UBS.
The National Council, through an unusual left-right alliance, voted twice over the last day to reject government guarantees authorized last month of 100 billion Swiss francs (about $110 billion) to help keep Credit Suisse afloat and 9 billion francs to help UBS mop up any losses it may incur in the deal.
The votes took place in a special parliamentary session that wrapped up Wednesday to scrutinize long-running troubles at Credit Suisse, a 167-year-old bank that was a pillar of Swiss finance, and the government plan to save it from a collapse that could have shaken the global financial system.
Switzerland's main right-wing party opposed tighter regulations on banks, while centrists favored tougher rules but would accept state help for banks in some cases. Left-leaning parties that have long decried “overly dangerous” banks were insistent on stricter limits on bonuses for top executives and requirements for more money to be kept on hand by the biggest lenders.
