Swiss Parliament on Credit Suisse: The crisis of Credit Suisse, one of the oldest banks in the world, is not over yet. Switzerland’s parliament has rejected the government’s rescue package…
Credit Suisse UBS Deal: The current banking crisis that started in America (Banking Crisis 2023) is not taking its name to end. After falling victim to some US banks, this crisis also took one of Europe’s oldest banks, Credit Suisse, into its fold, causing panic in the banking world around the world. This is the reason that the Swiss government intervened and tried to find a solution, but now it seems that the matter is going to be prolonged. In fact, the Parliament of Switzerland has rejected the rescue package prepared in haste by the government.
Case stuck in lower house
After the intervention of the Swiss government, another major bank there UBS (UBS) agreed to buy the troubled Credit Suisse. The government had prepared a rescue package of 109 billion Swiss francs i.e. $ 120.82 billion for this deal. The Upper House of the Swiss Parliament has approved the government contribution to the package, but the matter is stuck in the Lower House. The larger house of Parliament also rejected the rescue package on Wednesday.
Two days’ efforts proved insufficient
Efforts were going on for two days in the Lower House regarding the package. First of all, the government tried to pass it on Tuesday, but after proceedings that lasted till late night, the Lower House rejected the package. After this, the government tried to pass the package again on Wednesday, but it failed. In the Lower House, 71 votes were cast in favor of the package, while 103 votes were cast to reject it.
Can still happen
However, in a Reuters report quoting experts, it has been told that even after this, the government can move forward on the related package. The government has proposed this package using the emergency law, so it is not possible to stop it. However, this will definitely indicate that the decision of the government is not based on consensus.
Such is the opinion of Swiss MPs
MPs in favor of the package say they are concerned about Switzerland’s image. Switzerland has long been considered the center of global banking. This sector also has a huge contribution in the economy of Switzerland. In such a situation, if a bank that is more than 150 years old sinks there, then its image in the banking world will be affected. On the other hand, the opposing MPs say that they cannot support such funding.
If it is not sold then it will be ruined
Let us tell you that after several days of struggle, UBS Bank had agreed to buy Credit Suisse for $ 3.25 billion. Switzerland’s Finance Minister Karin Keller-Sutter had then said that if the crisis-ridden Credit Suisse bank was not sold, it would not be able to survive in the market for a single day. This was the reason that the government of Switzerland itself had to intervene to get the deal of the sale of Credit Suisse.
Many governments got upset
Due to Credit Suisse getting caught in the banking crisis, not only Switzerland but governments from America to Britain had raised their ears. Everyone wanted to find a solution to the crisis as soon as possible, so that the current banking crisis does not take a formidable form. Credit Suisse is the biggest name to fall prey to this banking crisis. Started 167 years ago, this bank was considered a very prestigious name in the world of banking. UBS had initially offered only up to $ 01 billion for this deal, which Credit Suisse said was too low. Later, UBS increased the offer to $3.25 billion.
Warren Buffet also expressed concern
The current banking crisis that started from America is reminding analysts of the 2008 banking crisis. In America, Silicon Valley Bank, Signature Bank, First Republic Bank, Western Pacific Bank etc. have become victims of the current crisis. Germany’s largest bank Deutsche Bank is also in danger of collapse. Meanwhile, veteran investor Warren Buffet has also issued a warning about the banking crisis and has clearly said that this crisis is not over yet. However, Buffet also added that American depositors should not panic because their money is safe.
