Switzerland and the financial crisis
The Swiss banking system is reacting faster to last year's devastating collapse of Lehman Brothers than those of other countries, say observers. A year ago today, Lehman Brothers, one of Wall Street's most revered institutions, went bankrupt at the peak of the financial crisis. The collapse sent shockwaves throughout the world and hastened the global recession.
With Ireland coming under increasing pressure to raise corporate taxes, Swiss cantons are eyeing the opportunity of seizing a greater share of company relocations.
The “Swiss finish” to Basel III banking reforms have set tougher standards for Swiss banks, which must wait and see if they turn out to be an advantage or a burden.
Big Swiss banks UBS and Credit Suisse must hold almost twice as much capital as set out in the new international Basel III standards, a report has said.
Recent efforts by UBS to boost its tattered reputation through marketing, refurbishment and sponsorship deals have met with a mixture of hope and scepticism.
The Basel III banking reforms have been hailed as a regulatory milestone around the world, but they represent only half the story for Switzerland’s largest banks.