by Many Swiss politicians and members of the public remain angry about the recent rushed government deal to head off the potential collapse of Credit Suisse. This week a majority of the National Council, Switzerland’s federal parliament, voted in favour of measures to reduce the risk systemic big banks pose to taxpayers, reported RTS. © Pincasso | Dreamstime.comSpearheaded by Prisca Birrer-Heimo, a member of the Socialist Party in Luzern, the National Council voted in favour of two changes. The first is to ban bonuses for senior management. According to Birrer-Heimo, bankers get rewarded for their deals when they go well while taxpayers carry the risks. The second change is to require higher capital ratios of at least 15% for banks of systemic importance. Some would like to see even
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Many Swiss politicians and members of the public remain angry about the recent rushed government deal to head off the potential collapse of Credit Suisse. This week a majority of the National Council, Switzerland’s federal parliament, voted in favour of measures to reduce the risk systemic big banks pose to taxpayers, reported RTS.
Spearheaded by Prisca Birrer-Heimo, a member of the Socialist Party in Luzern, the National Council voted in favour of two changes. The first is to ban bonuses for senior management. According to Birrer-Heimo, bankers get rewarded for their deals when they go well while taxpayers carry the risks. The second change is to require higher capital ratios of at least 15% for banks of systemic importance. Some would like to see even higher capital requirements.
These two proposals were accepted by 101 versus 70 votes and 92 versus 82 votes respectively. Around 20 abstained on each vote.
In addition, there were calls to strengthen FINMA, Switzerland’s financial regulator. Birrer-Heimo would like the regulator to have the ability to sanction miscreant banks with fines and public sanctions.
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RTS article (in French) – Take a 5 minute French test now
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