Switzerland reiterates UBS-Credit Suisse takeover is a done deal

THE Swiss government reaffirmed that the state guarantees for the takeover of Credit Suisse Group by UBS Group are binding, even after parliament last week declined to approve them.

Some legal experts voiced doubt in Swiss media on whether the financial commitments – which had been approved in advance by a special group of senior lawmakers – could be binding after the parliament’s rejection.

“Parliament debated these credits on the premise that a rejection would have no legal effect on the Confederation’s emergency commitments made to the Swiss National Bank and UBS,” the government said in a statement on Wednesday (Apr 19). “The Federal Council shares this legal opinion.”

“Without these commitments, the takeover of Credit Suisse by UBS, and thus the stabilisation of the financial system, would not have been possible,” it said.

The government guarantees for 109 billion Swiss francs (S$162.1 billion) of emergency liquidity and potential losses related to the takeover. BLOOMBERG