On Sunday, the NZZ am Sonntag paper reported that the management of Credit Suisse had overlooked breaches of regulations for years and that bank leads the pack when it comes to the most ongoing FINMA investigations.
In recent years, FINMA has initiated five proceedings against the bank to remedy these omissions. The most recent cases concern the billions lost via the Greensill and Archegos funds. There have also been investigations into money laundering and executive espionage. A report shows that Credit Suisse ignored more than 100 red flags in total.
The SonntagsBlick paper highlighted one such red flag around the time when Urs Rohner was head of the board of directors. It concerns a client advisor who managed the funds of wealthy Eastern Europeans that earned the bank some CHF25 million francs a year. According to the SonntagsBlick, he was alleged to have invested his clients’ assets in high-risk investments without their knowledge, falsified documents and lined his own pockets in the process. Despite warnings, he allegedly continued to work for the bank and was only fired in 2015 after making massive speculations.
The SonntagsZeitung paper wrote that the bank’s heavy losses also have political consequences. The Credit Suisse issue is on the agenda of the House of Representatives’ economic committee next week. The main topic for discussion will be whether and how the regulation of the big banks should be strengthened. The greatest need for action is in the area of risk management, where there are clear gaps. A member of FINMA will also be present to answer questions.
Popular Stories
More
Foreign affairs
What Trump’s return or a new Harris administration would mean for Switzerland
Should raw milk sales be banned or should consumers decide?
Swiss food regulations do not allow raw milk to be sold for direct consumption. However, a loophole allows 400 raw milk vending machines to do just that.
Is reforming the Swiss pension system still possible, and if so, how?
Solutions still need to be found to meet the challenge of an ageing population and to improve the pensions of low-paid workers, the majority of whom are women.
This content was published on
Czech President Petr Pavel and his wife, Eva Pavlova, arrived in Switzerland on Tuesday at the start of a two-day state visit.
Study shows proliferation of non-native plants is driver of insect invasions
This content was published on
A global study has revealed that insect invasions are being driven by the proliferation of non-native plants. This can can massively disrupt ecological processes, often leading to serious economic impacts.
Swiss set record for world’s longest hyperloop test
This content was published on
Swiss scientists have established a record for the longest-ever hyperloop journey at a facility in Lausanne, Switzerland.
This content was published on
The Swiss army wants to purchase new German armoured howitzers to replace its existing artillery system which has been in operation for over 50 years.
Poll suggests Donald Trump has many fans in Switzerland
This content was published on
Around a quarter of Swiss citizens would vote for Donald Trump if they had the chance, according to a recent poll. This percentage is higher than in many other European countries.
Swiss court rejects special assistance for student with disabilities
This content was published on
The Swiss Federal Court has rejected an application for special assistance from a student with disabilities at the federal technology institute ETH Zurich.
Police arrest 15 drug dealers in Verbier in southern Switzerland
This content was published on
Swiss and French police have arrested 15 suspected drug dealers operating in the mountain resort of Verbier in southern Switzerland.
New European space tech centre in Switzerland launches its first project
This content was published on
The European Space Deep-Tech Innovation Centre (ESDI), launched in collaboration with the Paul Scherrer Institute (PSI), is to be located in the immediate vicinity of the PSI in northern Switzerland.
Swiss Federal Railways launches campaign for safety on public transport
This content was published on
The Swiss Federal Railways is launching a campaign for greater respect and safety on public transport, with posters to go up in stations and on trains starting next week.
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.
Read more
More
Credit Suisse plots comeback after ‘costly mistakes’ took it to the brink
This content was published on
New chair António Horta-Osório will look to overhaul bank’s risk management culture after the Greensill and Archegos failures.
Credit Suisse warns of ‘highly significant’ loss linked to hedge fund
This content was published on
Credit Suisse says it may face a “highly significant” loss due to an unnamed American hedge fund client defaulting on margin calls.
You can find an overview of ongoing debates with our journalists here . Please join us!
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.