Swiss lawmakers from both right-wing and left-wing political parties are mounting a new effort to split up banking giants UBS and Credit Suisse, according to a report published by Reuters.
Three motions aimed at separating investment banking activities from so-called systemically relevant activities, were submitted by lawmakers of the Lower-house of the Swiss parliament.
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"A bank should only as big that it can be allowed to fail in an emergency, without the state intervening," Caspar Baader, parliamentarians from Switzerland’s right-wing Swiss People’s Party (SVP) said in parliament.
"We need smaller banks as a result, and thus more of them," Baader added.
In 2009, SVP lawmakers joined hands with the left-wing Social Democrats (SP) over splitting up UBS and Credit Suisse, but those efforts failed after differing political aims emerged when the two began hammering out details.
According to Reuters, this time, the SVP offered few specifics, asking the government, which said it would oppose the motion, for suggestions instead.
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By GlobalDataLast month, the Swiss regulator said that Switzerland shouldn’t bail out its largest banks again before asking creditors and shareholders to stump up.
