The Swiss Parliament splits over the Credit Suisse-Ubs operation
In Switzerland, the lower house has rejected state guarantees to UBS for the acquisition of Credit Suisse. The operation is not at risk, but the Swiss Parliament is split. All the details
The lower house of Switzerland's parliament has voted against the 109 billion francs of state guarantees for the acquisition of Credit Suisse by UBS, the country's largest bank.
HOW THE VOTE WENT
102 members of the lower house spoke out against the motion, 71 in favor and two abstained just before midnight in the capital Bern.
ONE SYMBOLIC VOTE ONLY
However, this is a symbolic stance, Bloomberg explains, given that Parliament does not have the power to stop the takeover, negotiated last month.
– Read also: I'll tell you about the torments in Switzerland on Credit Suisse
In fact, the government in Bern has already obtained the approval of a small group of lawmakers (the so-called financial delegation) on the weekend in which the agreement was reached to bail out Credit Suisse. This six-member delegation has the right to approve urgent tax matters on behalf of parliament.
WHAT HAPPENS NOW
The vote against the lower house, however, is in contrast with that of the upper house, which approved the state guarantees last Tuesday. The motion will now return to the Senate for a new debate.
The two chambers of parliament, therefore, are seeking a compromise on support for government guarantees for the acquisition of Credit Suisse by UBS. If they do not reach it, the bill will be rejected, but the operation of the two banks – given the approval of the financial delegation – will not be stopped in any case.
“A TERRIBLE SIGN”
“What we should do is build a bridge,” Erich Ettlin, a member of the Center's Alliance in the upper house, who has already approved the 109 billion francs of guarantees, told Bloomberg . "It would be a terrible signal if parliament rejects it."
ALL THE LATEST INSPECTION FROM START MAGAZINE ON THE CREDIT SUISSE CASE:
I tell you the torments in Switzerland on Credit Suisse
The Swiss authorities explain but do not convince the rescue of Credit Suisse
Will the Credit Suisse bomb pocketed by UBS explode?
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/ubs-svizzera-garanzie-statali/ on Wed, 12 Apr 2023 14:14:02 +0000.