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Swiss Pension Funds are Considering Legal Proceedings for Credit Suisse

A foundation representing Swiss pension funds is considering legal action over the acquisition of Credit Suisse by UBS.

The Ethos Foundation, whose members have significant stakes in both Swiss banks, believes shareholders should have had a say in the takeover. They also think there were better strategic options for Credit Suisse.

To facilitate the takeover quickly and to prevent unrest in the financial markets, the Swiss government sidelined the shareholders of both banks. In addition, a special rule made the takeover possible without the owners being allowed to comment on the merger. But the Ethos Foundation considers that acquisition “a huge waste for shareholders and the Swiss economy as a whole”.

For example, the foundation believes it would have been better to separate the Swiss consumer bank from Credit Suisse and float it separately on the stock exchange. It, therefore, calls on the Swiss government and regulators to take that step after all. This could save jobs and ensure enough healthy competition, which would otherwise largely disappear.

The Ethos Foundation says it is considering all means to defend the rights of shareholders, particularly Swiss pension funds. Legal action is therefore not ruled out either.

The foundation is not the only one that has questions about the merger between UBS and Credit Suisse. In addition, various political parties are concerned about the size of the merged bank.

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