Swiss Inquiry Blames Credit Suisse Collapse on Mismanagement, Criticizes Regulators

A parliamentary report finds years of executive failures at Credit Suisse as the primary cause of its collapse, while identifying regulatory shortcomings that failed to prevent the crisis.

The 18-month inquiry concluded that Credit Suisse's collapse in March 2023 was driven by years of strategic errors and executive mismanagement, not misconduct by Swiss authorities.
Regulators, particularly FINMA, were criticized for ineffective oversight, including granting capital relief in 2017 that weakened the bank's resilience in later years.
The Swiss government orchestrated a $3.25 billion emergency acquisition by UBS to prevent a global financial crisis, leaving UBS as Switzerland's sole systemically important bank.
The inquiry recommended 30 reforms, including stricter 'too-big-to-fail' rules, enhanced regulatory powers for FINMA, and better transparency in government crisis management.
The report highlighted the need for improved information sharing and record-keeping during crises, as informal and undocumented meetings hindered effective decision-making.