Switzerland’s Federal Prosecutor has opened an investigation into the state-backed takeover of Credit Suisse\n \n by UBS Group, the office of the attorney general said Sunday. The prosecutor, based in the Swiss capital Bern, is looking into potential breaches of the country’s criminal law by government officials, regulators and executives at the two banks, which agreed on an emergency merger last month to avoid a meltdown in the country’s financial system.
Out of the ordinary “It’s astonishing that the prosecutor would comment,” said Mark Pieth, professor emeritus of the University of Basel, where he has taught criminal law and criminology. But the rescue “is so out of the ordinary that they had to say something.” Pieth said the prosecutor could be probing breaches of secrecy provisions by officials, or the trading on inside information, adding that the wiping out of some bondholders as planned under the deal is also problematic.
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