Merger of UBS and Credit Suisse enormous risk for Switzerland: Swiss lawmaker

Roger Nordmann said he was concerned about job losses, and blamed Credit Suisse's leadership for the bank's failure

Published : 20 March 2023, 10:00 AM
Updated : 20 March 2023, 10:00 AM

UBS's takeover of Credit Suisse creates an enormous risk for Switzerland, Roger Nordmann, leader of the Social Democrats (SP) in the Swiss parliament, said on Monday.

"The Swiss National Bank and the government has put 209 billion francs on the table – it is an enormous risk for Switzerland," Nordmann told Reuters.

"The new UBS is also another massive risk – it's going to have more than 1,500 billion francs in assets, and it's simply too big for Switzerland," he added.

The Social Democrats are the second biggest party in the Swiss parliament and have two ministers in the country's ruling cabinet.

Nordmann, who leads the SP in the lower house, said he was concerned about job losses, and blamed Credit Suisse's leadership for the bank's failure.

"What has happened is terrible for the credibility of Switzerland," he said. "It's a warning shot for Switzerland about having banks which are just too big."

"I'm very concerned about the new UBS. There has to be more separation between banks' ordinary savings business, investment bank and asset management."