Magdalena Martullo-Blocher, daughter of Swiss People’s Party (SVP) founder Christoph Blocher and herself an MP in Swiss National Council (Nationalrat), said a bank separation (Glass-Steagall) system would have prevented the Credit Suisse debacle in an interview with the Zürich-based Watson news portal. She also said a multi-reserve currency system is good for Switzerland and the current decarbonization agenda is bad.
“After the state bailout of UBS, the SVP, together with the left, wanted to push through a bank separation system,” Ms. Martullo-Blocher said. “The riskier part of a bank could have gone bankrupt separately. The FDP [Free Democrats] and CVP [Christian Democrats] had prevented that. The ‘too big to fail’ regulation did not deal with the bank run, when customers withdraw their money. Ensuring liquidity was left to the [Swiss] National Bank (SNB). CS now needs such large amounts that not even the SNB is equipped to handle it and the federal government has to step in. The federal guarantee alone corresponds to 1.5 times the annual federal budget!”
The interviewer asked if the U.S. had put pressure on Switzerland, and if they did not want the U.S. part of Credit Suisse to be spun off and wound up.
