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  • World - Europe
  • Updated: April 09, 2023

Takeover Of Credit Suisse Prevented Switzerland Economy Collapse, Says Minister

Takeover Of Credit Suisse Prevented Switzerland Economy Coll

A sign of Swiss bank Credit Suisse is seen in Basel, Switzerland, April 4, 2023. (AFP Photo)

Swiss Finance Minister Karin Keller-Sutter on Sunday said that Switzerland's economy would probably have collapsed if Credit Suisse had gone bankrupt.

She said that the government had acted in the country's best interests in swiftly arranging the takeover of Switzerland's second-biggest bank.

"Given the circumstances, we acted as best as we could to minimize the burden on the state and the taxpayers.

"Without determined intervention by the authorities, the alternative would have been a bankruptcy of Credit Suisse on Monday morning, accompanied by a probable collapse of the Swiss economy.

"The bank would have gone bankrupt on Monday, March 20. For what? Because over the years, there has been a culture that seems to have created the wrong incentives. Because there have been many scandals."

Amid fears of a global banking crisis last month, investor confidence in Credit Suisse collapsed on March 15.

The government then orchestrated a takeover the weekend before the markets reopened on March 20.

The takeover talks were hastily conducted at Keller-Sutter's Finance Ministry in Bern, and the $3.25 billion deal was announced on the evening of March 19.

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