Following backlash, Swiss parliament calls emergency session on Credit Suisse bailout

Bern: After leaving no stone unturned to pull the beleaguered Credit Suisse out of financial turmoil last month, the Swiss government has now come in for criticism by a section of parliamentarians on the bailout by rival UBS.

Many Swiss parliamentarians have criticized the rapid rescue effort, which saw Credit Suisse taken over by rival UBS for 3 billion Swiss francs ($3.3 billion) and propped up with over 250 billion francs in guarantees and aid.

Following the criticism, the Swiss parliament will meet in Bern for an extraordinary session to discuss Credit Suisse’s downfall as well as the government’s open chequebook response.

The unusual move – the third such session in over twenty years – provides the Swiss parliament with a chance to reject the massive loans given as part of the rescue package. The vote is, however, largely symbolic as the state has already committed the funds and lawmakers cannot overturn that decision.

In the run-up to the announced merger, a sub-group of six members of parliament approved the financial commitment on behalf of the legislative body, to the extreme annoyance of the almost 250 lawmakers left without a say in the matter.

“It’s the responsibility of politics to have a say especially when such a big contribution is being made by state and emergency law is being used,” said Celine Widmer, a member of the Swiss National Council for the left-leaning Social Democrats.

“There is a lot of anger and frustration in the Swiss population and we can feel that,” said Roland Fischer, another lawmaker. “In theory, we could reject it but that would not hold up legally.”

In Tuesday’s session, legislators will get a chance to challenge the rushed rescue package and discuss whether conditions can be imposed on Credit Suisse.

Last week, Switzerland announced it was cutting bonus payments for Credit Suisse’s top management.

“We demand a thorough investigation into how the Credit Suisse crisis could have come about,” Thierry Burkart, leader of the centre-right FDP party, told Swiss newspaper Tages-Anzeiger.

Credit Suisse’s bailout angered not only politicians but many in Switzerland. A survey by political research firm gfs. bern found a majority of Swiss did not support the deal.

The Swiss people are also worried about upcoming job cuts. In an open letter to the country’s parliament, the Swiss Bank Employees’ Association said on Tuesday that Credit Suisse and UBS must freeze any job cuts.

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