Key Points
The Swiss government was compelled to intervene to save Credit Suisse Group AG as the troubled bank wouldnt have survived another day of trading amid a crisis of investor confidence, Finance Minister Karin Keller-Sutter said.. CS would not have survived Monday, Keller-Sutter said in an interview with Zurich newspaper NZZ..
The impact of a disorderly bankruptcy may have been as much as double Swiss economic output, the minister said, citing expert estimates..
The government-brokered purchase of Credit Suisse by UBS Group AG last weekend has been widely criticized for running roughshod over investors rights as well as saddling Swiss taxpayers with a huge burden in the event of another crisis..
A temporary nationalization of Credit Suisse may have lasted far longer than the government wanted as experience also shows that it can take years or even decades before the state can withdraw from ownership of a bank...
Asked about the impact of the pandemic and now this crisis on Switzerlands finances, Keller-Sutter said the priority is to improve the countrys deficit..
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