Authors:

  • Lucian Bebchuk

Excerpt

March 27, 2023, Opinion: "Credit Suisse, one of the world’s largest 30 banks with assets exceeding $500 billion, melted down earlier this month. How this collapse quickly unfolded raises serious questions about the regulatory actions preceding it and the future of banking regulation.  On the afternoon of Wednesday March 15, the Swiss National Bank (SNB) and the Swiss banking regulator (FINMA) issued a joint statement expressing unambiguous confidence about the stability of Credit Suisse. SNB and FINMA unequivocally stated that Credit Suisse “meets the higher capital and liquidity requirements applicable to systemically important banks.” SNB also pledged to provide CS with liquidity if necessary."