Credit Suisse could face disciplinary action, Swiss regulator says

ZURICH: Swiss financial regulator FINMA said it was considering whether to take disciplinary action against Credit Suisse managers after Switzerland’s second largest bank had to be rescued last week by UBS.

FINMA President Marlene Amstad told Swiss newspaper NZZ am Sonntag it was “still open” whether new proceedings would be started, but the regulator’s main focus was on “the transitional phase of integration” and “preserving financial stability”.

UBS agreed to buy Credit Suisse for 3 billion Swiss francs ($3.26 billion) in stock a week ago and to assume up to 5 billion francs in losses in a merger engineered by Swiss authorities during a period of market turmoil in global banking.

Credit Suisse on Sunday declined to comment on the FINMA President’s comments when asked by Reuters for a response.

Asked whether FINMA is looking into holding current Credit Suisse managers accountable for the collapse of Switzerland’s second-largest bank, Amstad said it is “exploring the options”.

“CS had a cultural problem that translated into a lack of responsibilities,” Amstad was quoted as saying by NZZ, adding: “Numerous mistakes were made over several years”.

FINMA had conducted six public “enforcement proceedings” against Credit Suisse in recent years, Amstad said.