The Social Democrats want to control the banks. Especially since comrade Prisca Berer Hemo (62 years old) develops into a real banking shock. The National Advisor for South Sudan from Rothenburg LU made two proposals regarding action. No more bonuses and a thick cap like anywhere else in the world.
Background: SP Switzerland has broken its collar after scandals surrounding finance companies Greensill and Archegos, and the party is calling for drastic action. For example, bonuses must be completely prohibited by law for the top management of banks of systemic importance.
Significantly smaller big banks
The reason: “Recent events at Credit Suisse – billions in losses due to Archegos and Greensill – show how bonus-driven incentive systems promote an aggressive risk culture and that risk and compliance systems are completely neglected,” the movement’s “SonntagsZeitung” reports. .
But that’s not all: The second move wants to make the capital base of the big banks as solid as concrete. UBS and Credit Suisse will have to offer an unweighted equity ratio of 15 percent in order to be able to mitigate losses from risky business on their own.
SonntagsZeitung has calculated exactly what that means. Each of the two major banks will have to form a capital cushion of 92 billion francs. But such accumulation cannot be achieved by retained earnings alone, even if it is allowed for ten to fifteen years. This means that the two large banks will have to significantly reduce their balance sheets, that is, significantly reduce their business. (skylight)
Publication date: 07/11/2021 at 3:14 pm مساء
Last update: 07/11/2021, 4:31 pm