The Swiss government plans to keep the information regarding a bank collapse classified for 50 years.
Credit Suisse, a troubled financial institution, was acquired by UBS in March. The purpose of this deal was to restore public confidence in the Western financial system.
According to a document from a parliamentary committee, a probe into the collapse of Credit Suisse, Switzerland’s banking giant, will keep its files confidential for 50 years.
The investigating commission will give its files to the Swiss Federal Archives after a more extended period than usual to maintain confidentiality in the case. The investigation is centred around the actions of the Swiss government, financial regulator, and central bank leading up to the emergency takeover of Credit Suisse.
The Swiss Society for History is expressing concerns about a recent announcement. Sacha Zala, the society’s president, reportedly wrote a letter to the commission stating that access to Credit Suisse files would be precious for researchers studying the 2023 banking crisis.
During its initial meeting in Bern, the committee stated that everyone involved in the discussions and interviews, including committee members and interviewees, must maintain confidentiality. Reuters reported this information.
The warning stated that any indiscretions could complicate the commission’s work or harm its credibility, which could have negative consequences for the Swiss Financial centre.
Credit Suisse, the second-largest bank in Switzerland, has experienced a series of scandals, legal problems, and customer outflows in the past few years. The bank recorded a net loss of 7.3 billion francs ($8.5 billion) 2022. In March, the Saudi National Bank, the largest investor, stated that it could not offer financial assistance because of regulatory and statutory restrictions.
In a government-brokered deal, UBS has agreed to purchase Credit Suisse’s struggling institution for $3.25 billion. In a significant development, a major merger has occurred in the banking industry. This merger is being hailed as the largest since the 2008 financial crisis. It comes at a time when concerns are mounting about the possibility of a wider spread of financial troubles following the recent collapse of several regional banks in the United States. Credit Suisse’s 167-year history ended with the acquisition, damaging Switzerland’s reputation as a stable global financial centre.
