‘A monster is born’, say local press, as Credit Suisse takeover by UBS creates bank twice the size of the Swiss economy
“Credit Suisse drifted from its cautious, perhaps slightly boring Swiss ways of old and tried to imitate Anglo-Saxon business models with excessive bonuses,” said Thierry Burkart, president of the liberal FDP party.
In Zurich, the fear is that the loss of trust in Credit Suisse could also translate into broader damage to the Made in Switzerland brand. Now the banking sector’s reputation has been tainted, fears are that “Swissness” as a whole could lose its value-enhancing shine.“The damage to Switzerland’s reputation is going to be enormous”, said Daniel Binswanger, a Swiss commentator and editor of online political journal Republik. “It will destroy the myth of this efficient, reliable, almost extraterritorial state.”
Even Switzerland’s unique and feted model of direct democracy has been tarnished by the banking scandal. Swiss voters have over the past 12 months had a chance to vote in referendums on everything from factory farming to film funding. They did not have a say in Sunday’s rescue deal, however, which will see the state support the banks with three tranches of liquidity and loans, as well as a pledge to absorb up to 9bn francs in potential losses.
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