In its recent report into the collapse of Credit Suisse, the Swiss Financial Market Supervisory Authority ("Finma") called for enhanced powers to oversee banks, claiming it did all it could to prevent the collapse of Credit Suisse within the confines of current statutory limitations. The bank's collapse was caused by "inadequate implementation of its strategic focus areas, repeated scandals and management errors," Finma wrote.
The regulator claimed to have spotted these problems at the bank and argued that it had used all available tools to try to stabilize it. "Although its actions had an effect, they were unable to overcome the causes of the loss of confidence, such as shortcomings in strategy implementation and in risk management," said Thomas Hirschi, Head of Finma's Crisis Unit and Banks Division. In order to be able to compel banks to remedy such shortcomings in the future, Finma argued that it would need to be able to issue fines and hold executives individually accountable.
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