She also said that most of the regulator's probes into banks had to remain secret, adding that this should change. Switzerland built its financial industry on secrecy and this discretion is deeply ingrained in the country. "FINMA is keen to ensure that we can make our work more visible to the public in future – as our supervisory colleagues in other countries are often allowed to do," she said. The agency also wants bankers to be held to account in a special regime that singles them out as responsible. "Imposing fines would be a step forward. But, as we have seen, Credit Suisse paid billions in fines and that didn't change its catastrophic business strategy," said Dominik Gross of the Swiss Alliance of Development Organisations. "There must be the power to pursue top managers of banks for criminal negligence." While the takeover of Credit Suisse has been agreed, many hurdles, such as winning regulatory approval from countries around the world, lie ahead. People familiar with the matter said the Bank of England had approved the deal in the United Kingdom, a key market. ($1 = 0.9049 Swiss francs) (Reporting By John O'Donnell Editing by Tomasz Janowski)
(Adds comment, detail, background)
By John O'Donnell
BERN, April 5 (Reuters) - Switzerland's financial
regulator deflected blame for the collapse of the country's
second-biggest bank, Credit Suisse, saying it had been quick to
respond, calling instead for more powers to take lenders to
task.
"We reacted very fast," FINMA president Marlene Amstad told
journalists, adding that it was the responsibility of management
to avoid such a situation and that regulations alone could not
solve a crisis of confidence such as the one that toppled the
bank.
The remarks of the regulator, which has primary
responsibility for oversight of one of the world's biggest
financial centres, were in stark contrast with the humbling
apology issued by Credit Suisse's chairman a day earlier.
Axel Lehman had told shareholders he was 'truly sorry" for
taking Swiss bank to the brink of bankruptcy.
That triggered a hastily arranged takeover by Zurich-based
UBS , bankrolled with more than 200 billion Swiss francs
($221.02 billion) of state support and guarantees, which all
but wiped out shareholders, as well as swathes of bond holders.
Its final meeting of shareholders on Tuesday marked an
ignominious end to the 167-year-old bank founded by Alfred
Escher, a Swiss magnate affectionately dubbed King Alfred I, who
helped to build the country's railways and then the bank.
FINMA's Amstad called for more power to penalise and name
and shame banks that break the rules. Her agency is largely
powerless to call banks to account, as Switzerland pursues a
hands-off approach to industry, giving it free rein.
"Our instruments hit their limits ... as seen in the case of
Credit Suisse," said Amstad, making a rare public appeal for
more power.
"FINMA has no power to fine," she said, adding that she
would welcome such clout. "It's an exception when compared with
other regulators."
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.