The Role of Switzerland in the Collapse of Credit Suisse and its Dependence on the US is Laid Bare in the Parliamentary Investigation Commission’s Report
The Credit Suisse crisis shows how Switzerland, once an independent financial nation, has become a mere executioner of US interests. The process, which began in 2017, has reached a new dimension with the dramatic developments of the past year.
Already in 2017, Credit Suisse was, in effect, bankrupt, as the Parliamentary Investigation Commission’s report meticulously documents. Despite this financial precariousness, the company was kept afloat through regulatory leniency and political tolerance. The Swiss Financial Market Supervisory Authority (FINMA), whose duty is to safeguard the interests of Switzerland, turned a blind eye when it came to demanding fresh capital for CS, instead introducing so-called “filters” to mask massive balance sheet gaps, while bonuses and dividends were still being paid out.
The situation escalated in the fall of 2022, when US authorities drastically increased the liquidity requirements for CS’s American subsidiary. The resulting outflow of customer funds ultimately led to the bank’s collapse.
In March 2023, as the Silicon Valley Bank in the US collapsed, the US government pulled the last lever and prompted the postponement of CS’s annual report. This unprecedented measure, for a systemically relevant bank, triggered a panic in the financial markets.
The Role of FINMA in the US Betrayal
The Swiss National Bank (SNB) and the Swiss government faced an insurmountable task: to preserve international confidence in Switzerland’s financial hub and secure the stability of Credit Suisse. 248 billion francs were pumped into the rescue effort – a third of Switzerland’s gross domestic product. However, a significant portion of this money flowed not into stabilizing Credit Suisse as a whole, but was, according to the Federal Reserve’s instructions, used directly for the rescue of the American subsidiary.
Switzerland, once proud of its sovereignty and neutrality, did not act as an independent actor in this moment, but as a vassal of the US. US authorities dictated how Switzerland was to shape its financial policy, and Switzerland followed without resistance.
Loss of Sovereignty
The report of the Parliamentary Investigation Commission reveals the tragic truth: Switzerland has not only invested billions in a failed bank, but also lost its sovereignty. Instead of controlling its financial markets, Switzerland has subordinated itself to the interests of a foreign great power. A country that allows foreign authorities to dictate how it should manage its own economy loses its status as a sovereign state.
The Credit Suisse collapse is not only a financial disaster, but also a revelation for Switzerland. The loss of independence and the willingness to act as a tool of the US are disheartening signs for a country that once understood itself as a pioneer of neutrality. Today, Switzerland has become a willing helper of the US.
The question is, how often can a country endure such humiliations before it finally stops being a sovereign state? The collapse of Credit Suisse and Switzerland’s role in this drama cast a dark light on the future of national independence and the safeguarding of financial sovereignty.