The media frenzy and the unkind comments surrounding the takeover of Credit Suisse by UBS on Sunday 19 March 2023 call for a reaction.
First, let’s note the spontaneous emergence of numerous economic and banking specialists, each with their own interpretation and judgement, whereas most people know little or nothing about this.
Comparing the situation in 2008 with that of today is a mistake because a lot has been done in the field of governance and controls for almost 15 years. Furthermore, it is forgetting that the trigger for the latest turmoil around Credit Suisse was the failure of a regional bank in the US and the loss of investor confidence in the banking system in general. Perhaps the solutions envisaged were not the right ones at the time: one is always more intelligent afterwards… Credit Suisse’s risk-taking with its investment bank was too great, which had unfortunately been apparent for several years. It paid a high price on 19 March. It is now easy to blame UBS, FINMA, the SNB and the Federal Council, even though their room for manoeuvre and the time available were limited.
It is true that the state had to bail out UBS in 2008 with a loan, but it must be added immediately that this loan was fully repaid, and that this operation earned 6 billion in interest for the Confederation!
The current positions of some people or media are like those of gravediggers eager to liquidate an industry that (still) generates thousands of jobs and pays billions in taxes in Switzerland.
This destructive and guilt-ridden attitude is a godsend for other stock markets in Europe, the US and Asia, which are only interested in weakening the financial sector in our country. Are they doing much better than us? I doubt it!
UBS did not want to acquire Credit Suisse: can we blame it for supporting the authorities in their efforts to stabilise the markets and the financial centres? It is perfectly normal for UBS to seek guarantees: if it did not, it would be accused of amateurism.
There are many people in this country and in some media who have what the German-speaking world calls “Schadenfreude”, which is difficult to translate into French or English, but which could be this “joy in the face of damage”.
Is it a form of “primary racism” against money, banks and finance? Is it forgetting that more than 90,000 people work honourably and without the huge bonuses mentioned in the media, paying taxes, and making our economy work? Or is it simply jealousy? It doesn’t really matter; this negativity is unhealthy and perverse.
It seems obvious that risk-taking and mistakes are part of entrepreneurship and industry, even if it is true that the proportions and attitudes of some managers are particularly detestable. Does this mean that we should “throw the baby out with the bathwater”? No, definitely not.
In view of the very delicate, not to say anxiety-provoking, international environment, we should perhaps keep our wits about us on certain issues and not overreact as some politicians, citizens, media and social media like to do…
Have a good week, good thoughts and see you soon