O swiss parliament rejected, on Tuesday 11, the release of another US$ 120 billion – around R$ 596.3 billion – in financial guarantees for the rescue of Credit Suisse. However, the vote was practically symbolic, since the government has already committed the necessary resources to save the bank.
The vote had 102 votes against the rescue, out of a total of 200 deputies. However, the Upper House of the Swiss Parliament — equivalent to the Brazilian Federal Senate — had already approved the release of funds to the bank. Differences between the Houses led opposing deputies to consider opening a Parliamentary Commission of Inquiry to investigate the operation.
About a month ago, the Credit Suisse was sold to UBS Group AG for US$3.2 billion in a historic transaction, which had the approval of the Central Bank of the country, in addition to the Executive itself.
The government’s participation in the Credit Suisse rescue operation was urgently analyzed by the Swiss Parliament. Heard by congressmen, the president of the country, Alain Berset, defended the deal and said that the failure of the bank would have “disastrous consequences” for the economy.
Despite the debates and votes in the Legislature, the chances of a reversal of the purchase of Credit Suisse by UBS are very small, since the agreement between the financial institutions was signed by a group of parliamentarians from the so-called “financial delegation” — who approved the transaction.
However, the Swiss Federal Prosecutor’s Office has launched an investigation into the transaction between the two banks. According to the Swiss authorities, alleged violations of criminal law by government officials, regulatory agents and executives of institutions will be investigated.