According to a Swiss newspaper SonntagsZeitung, preliminary results from a much anticipated parliamentary investigation into the collapse of Credit Suisse in 2023 have revealed major oversights by Swiss regulators that contributed to the bank’s downfall.
The newspaper said that the finance ministry, the Swiss National Bank (SNB), and the financial market regulator FINMA came under fire for their inability to stop the bank crash, citing sources within the parliamentary committee that was tasked with drafting the so-called PUK report.
The parliamentary committee’s head, Isabelle Chassot, told Reuters that the group was making progress on its work and had created a statement of facts. She did, however, emphasise that the committee had not yet reached a decision on the subject.
“There is therefore neither assessment nor criticism from the committee at this stage. The mention in the article of a majority or a minority opinion inside the committee does not correspond to reality,” Chassot said, Reuters reported.
The PUK report, which is anticipated to be released later 2024, was cited by the newspaper as evidence that FINMA was overly cautious and had the opportunity to step in when it became clear that Credit Suisse was having serious issues.
According to the report, the results also indicated that Swiss authorities, including the central bank, had made other mistakes and lacked preparation.
Credit Suisse collapsed in March 2023 and was taken over by longstanding competitor UBS following an official rescue, following escalating issues at the bank in 2022.
Reuters requested for comment, but it was denied by FINMA and the SNB, also the finance ministry had no comment on the matter.
Thomas Jordan, the chairman of SNB, claimed earlier that the collapse was the result of Credit Suisse’s management, but said that because the authorities were well-prepared, a wider financial crisis was avoided.