Credit Suisse fall is not the fall of Switzerland, says President
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Bern: Banking giant Credit Suisse's fall and emergency takeover have been worrisome for many. Now, Swiss President Alain Berset has declared that the fall of the big bank is not the fall of the nation.
He said, "The demise of Credit Suisse is not the demise of Switzerland. It is the loss of a bank; a large bank but only a bank. Nothing more, nothing less." He was speaking at the extraordinary session of parliament called to discuss the implosion of the bank.
Credit Suisse is the second-biggest bank in Switzerland and it is now being taken over by larger domestic rival UBS. The government, the central bank, and the market regulator engineered the deal for 3 billion Swiss francs to avoid a meltdown in the country's financial system.
The Swiss Bank Employees' Association (SBPV) on Tuesday wrote to parliament and said any job cuts planned as part of the emergency merger should be frozen, reported Reuters. "We ... call on you to support our demand for a freeze on layoffs by the end of 2023 in parliament. Politicians must not shirk their responsibility," wrote SBPV managing director Natalia Ferrara to lawmakers.
"For the past three weeks, many of the approximately 17,000 employees at Credit Suisse and the 22,000 UBS employees have been looking at their future with uncertainty. In the public debate about the takeover of Credit Suisse by UBS, there is a lot of talk about numbers, money, regulation, too big to fail, or bonuses. But the affected employees of the two banks remain only a side note. That needs to change," she added.
UBS Chief Executive Sergio Ermotti last week warned there would be "change and hard decisions" ahead following the takeover. However, he also said that it is too early to speculate on job cuts.