Credit Suisse has been banned from paying staff bonuses that were awarded before 2022.
The
Swiss government said the measures were appropriate because taxpayer
money was used to facilitate the $3.25B acquisition of Credit Suisse by
UBS.
- The Swiss government brokered a deal on Sunday that saw UBS acquire Credit Suisse, which has faced heavy deposit outflows and a selloff in recent weeks, following years of financial scandals and irregularities.
- $9.7B (SF9B) of public finances was used to support the acquisition.
- Bern also authorized the Swiss National Bank to use $108B (SFr100B) to provide UBS with additional liquidity.
- Credit Suisse vowed to pay outstanding bonuses in a bid to prevent a staff walkout following the acquisition.
- Switzerland's federal council intervened by barring Credit Suisse from disbursing any bonuses awarded before 2022.
- Many Swiss political parties opposed the use of public funds to facilitate the bailout of Credit Suisse.
- Banker bonus payouts have been a sensitive issue in Switzerland since the financial crisis in 2007 and 2008.
