Credit Suisse rescue package rejected by Swiss parliament

11:18 - 13 April 2023

Economy

Switzerland's parliament has rejected the government's $120.82b cash injection for Credit Suisse's merger with UBS, leaving the collapsed bank's hastily arranged rescue without a largely symbolic parliamentary blessing.

While the upper house had approved the government's contribution to the rescue package, parliament's lower, and larger chamber, pushed back again on Wednesday.

It had already rejected the proposals in a late night session on Tuesday, forcing the upper house to find a solution when it met again on Wednesday.

Seeking a compromise, the upper house passed changes to the measure on Wednesday morning, but it was not enough to sway the lower house lawmakers.

They turned it down by 103 votes to 71 in favour, a similar level of opposition to the night before.

"This decision has no impact on the takeover of Credit Suisse decided on March 19," the Swiss Finance Ministry said after the vote.

The support package had already been given binding approval by the parliament's finance delegation, due to the urgency of the matter, it said. "The funds have already been fully committed," it added.

Last month, the Swiss government invoked emergency law to sign off on the deal with UBS, to the ire of the almost 250 lawmakers left without a say.

"The use of emergency law has reached a level in the last three years that is beginning to annoy me," Hansjoerg Knecht, a member of Parliament's upper house, said on Tuesday.

(Source: Reuters)

Credit Suisse rescue package rejected by Swiss parliament

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