FINMA wanted more power to penalize and shame rule-breakers after the failure of Credit Suisse, Switzerland’s second-largest bank.
Swiss regulators drove the 167-year-old bank into a shotgun merger with UBS last month after two mid-sized U.S. lenders failed.
“Our instruments reach their limitations in severe circumstances as proven with Credit Suisse,” FINMA president Marlene Amstad told journalists. Amstad valued these abilities.
“FINMA cannot fine,” she said. “Unlike others.”
She also remarked that most of the regulator’s bank probes were secret to maintain stability and should change.
“FINMA is committed to ensure that we may make our work more visible to the public in future—as our supervisory colleagues in other countries are often able to do,” she said.
On Tuesday, Credit Suisse’s chief apologized for nearly bankrupting the bank. Shareholders sought accountability for the rapid fall of a national icon.
UBS (UBSG.S) management will reassure shareholders Wednesday that the Swiss government-backed merger may succeed.
