Swiss Lawmakers Demand Reform: The Unravelling of Credit Suisse

Swiss lawmakers called for stronger oversight of the financial sector in a report on Credit Suisse's collapse. They criticized regulatory opacity and pointed to managerial failures as the main crisis cause. Recommendations were made for reforms, including improved transparency and regulatory strength.

Amid the fallout from Credit Suisse's March 2023 collapse, Swiss lawmakers have issued a damning 569-page report urging sweeping reforms in the financial sector. The report criticizes the Swiss bureaucracy for its lack of transparency and accuses Credit Suisse managers of leading the bank to its downfall due to years of mismanagement.

The parliamentary committee pinpoints regulatory failures and haphazard crisis management during the bank's final days, recommending significant changes. These include reinforcing the regulatory body FINMA and better oversight, particularly of globally significant banks like UBS, which acquired Credit Suisse in a government-backed rescue.

The findings urge the government to tighten capital requirements and consider stricter board member residency rules to prevent similar financial collapses. Despite UBS's concerns about hindering business, lawmakers argue these measures are crucial for preserving Switzerland's financial stability.

(With inputs from agencies.)