Credit Suisse Scandal has Switzerland Changing System to Hold Top Bankers Accountable
Scandals around Credit Suisse have got Switzerland reconsidering a system in which top bankers have prior been untouchable.
Credit Suisse's heavy losses ($5 billion) from the collapse of family office - Archegos and the decimation of $10 billion of client investments backed by insolvent British financier - Greensill have caused discussion among lawmakers about fining bankers and ending the current laissez-faire regime, where fines on bankers are basically not possible.
"Bank directors don't take responsibility for their action because there is no need to. There are no real sanctions for mismanagement. The scandals that have hit Credit Suisse, from Mozambique to Greensill, are damaging for Switzerland's reputation. We have proposed a reform ... that would mean if something goes wrong, then the manager is on the hook”, said Gerhard Andrey, a Green member of the Swiss parliament.
These proposals follow the British model that makes top management of financial firms directly accountable for their actions and are to be discussed in the coming days.
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