Karin Keller-Sutter Welcomes the Dissolution of UBS Loss Guarantees
Published: Friday, Aug 11th 2023, 10:00
Updated At: Friday, Oct 13th 2023, 14:12
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The Swiss Federal Council has decided to end the loss guarantee with UBS after a relatively short period of time. According to Federal Councillor Karin Keller-Sutter, this decision was made in the interest of the Swiss Confederation and the taxpayers. She had discussed this with the leadership of the large bank and was pleased that the guarantee could be terminated so soon after the CS takeover by UBS. Keller-Sutter emphasised that the Confederation had taken on guarantees of up to 109 billion francs, but no money had been spent. The important conclusion from the Federal Department of Finance was that the takeover of CS by the competitor UBS and the accompanying measures had stabilised the financial system as intended. Keller-Sutter had harsh words for the CS management, saying that the situation in March with the impending collapse of CS was very serious and the damage would have been dramatic. She also expressed little understanding for the complaints of the AT1 bondholders due to the default of their bonds, saying that those who bought these highly-yielding debt securities had also known the risk. In conclusion, the Federal Council's decision to end the loss guarantee with UBS was made in the interest of the Swiss Confederation and the taxpayers, and the takeover of CS by the competitor UBS and the accompanying measures had stabilised the financial system as intended. Keller-Sutter had harsh words for the CS management and expressed little understanding for the complaints of the AT1 bondholders due to the default of their bonds.nnnnnnnn
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