Swiss government’s Credit Suisse-UBS support plan hits roadblock

Swiss Parliament delivers symbolic blow to government proposal
Swiss government’s Credit Suisse-UBS support plan hits roadblock
Credit Suisse-UBS merger faces rejection

The Swiss Parliament has rejected government support for the proposed acquisition of Credit Suisse by investment bank UBS, which would have amounted to 109 billion Swiss francs or $120.82 billion. This marks the second time the House of Representatives has rejected the measure, despite Senate approval.

The vote resulted in a 103-71 majority against the proposal, representing a symbolic rebuke to the government’s decision to largely bypass the Swiss legislature in this matter, which has angered many politicians.

Read more: UBS acquires Credit Suisse for 3 billion Swiss francs to end bank crisis

While the approved commitment to using emergency law cannot be reversed, Swiss Finance Minister Karen Keller-Sutter confirmed that the vote will have no effect on the acquisition of Credit Suisse, which was already decided on March 19th. The support package had also obtained binding approval from Parliament’s finance delegation, as it was deemed an urgent need.

The forced merger of the two banks, which took place last month for three billion Swiss francs and was backed by guarantees and support of over 250 billion Swiss francs, has faced widespread criticism, particularly due to the government’s use of the Swiss emergency law to push it through. This move has angered around 250 deputies.

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