The joint session of the Swiss Parliament on the Credit Suisse debacle started today. The Ständerat (Council of States) met first, and agreed upon approving the CS bailout, demanding, however, that in future cases, the government not use emergency laws. The National Rat (National Council) met at 5:15 PM, and the debate is continuing as we write this report. If there are differences between the two chambers, these will be smoothed out in the next two days.
The Swiss Parliament cannot change what the government (Federal Council) decides under emergency rule, but it can set a political signal if it votes against it. The National Council seems oriented to vote against, different from the Council of States.
Furthermore, proposals on how to regulate the banks in the future will be discussed, including, as we reported earlier, a Glass-Steagall (Trennbanken) system.
As the Basler Zeitung reports, “In a series of postulates, the Finance Committee of the National Council is demanding that the CS debacle be thoroughly investigated. The existing regulation — which was not applied — is to be evaluated. The Federal Council is to examine various measures, including a bank separation system. The government agrees with these demands.”
The session will be a test on whether, unlike the situation from 2008-2014, the political balance has shifted in Switzerland and whether the will to go through with ending the financial casino is going to prevail this time.
The liberal think-tank Avenir Suisse has fired a preemptive strike against the Trennbanken proposal in a long article published on its website. Avenir Suisse is led by failed FP politician Peter Grünenfelder and its foundation is chaired by Michel M. Lies, former CEO of Swiss Re Insurance and current chairman of the board of Zurich Insurance. https://www.avenir-suisse.ch/ein-trennbankensystem-macht-das-finanzsystem-nicht-sicherer/
