Switzerland’s national pride dealt heavy blow by the merger of its banking titans

“Credit Suisse drifted from its cautious, perhaps slightly boring Swiss ways of old and tried to imitate Anglo-Saxon business models with excessive bonuses,” said Thierry Burkart, president of the liberal FDP party.

In Zurich, the fear is that the loss of trust in Credit Suisse could also translate into broader damage to the Made in Switzerland brand. Now the banking sector’s reputation has been tainted, fears are that “Swissness” as a whole could lose its value-enhancing shine.“The damage to Switzerland’s reputation is going to be enormous”, said Daniel Binswanger, a Swiss commentator and editor of online political journal Republik. “It will destroy the myth of this efficient, reliable, almost extraterritorial state.”

Even Switzerland’s unique and feted model of direct democracy has been tarnished by the banking scandal. Swiss voters have over the past 12 months had a chance to vote in referendums on everything from factory farming to film funding. They did not have a say in Sunday’s rescue deal, however, which will see the state support the banks with three tranches of liquidity and loans, as well as a pledge to absorb up to 9bn francs in potential losses.

Well, that’s good news. I am a Christian and have succumb to my sin before and wish to never return.

United States United States Latest News, United States United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Bank shares slide after UBS agrees ‘emergency rescue’ of Credit Suisse – business liveEuropean supervisors have tried to settle markets and stop a rout in the market for convertible bank bonds on Monday, as investors digest Credit Suisse rescue deal
Source: GuardianAus - 🏆 1. / 98 Read more »

Market ‘not completely convinced’ this is over: UBS takeover of Credit SuisseEuropean Central Banks are reaffirming the rights of bondholders after Swiss authorities approved the UBS takeover of Credit Suisse. The Australian government is hopeful the rescue plan will calm concerns at home and potentially see the end of rate rises brought forward. The Motley Fool Chief Investment Officer Scott Phillips said it’s “only doing as much as it can probably do”. “The scarier question is, what would’ve happened had the central banks both in the US and in Europe done nothing,” Mr Phillips told Sky News Australia. “For now, the market’s not completely convinced this is over.”
Source: SkyNewsAust - 🏆 7. / 78 Read more »