CS - Credit Suisse UBS deal voted down by Swiss parliament's lower house

2023-04-12 12:21:27 ET

Switzerland's lower chamber of parliament delivered a largely symbolic rebuke to the government's executive branch for engineering UBS's ( NYSE: UBS ) acquisition of troubled rival Credit Suisse ( NYSE: CS ).

The National Council voted 102 to 71 to reject government guarantees authorized last month of CHF 100B (~$110B) to keep Credit Suiss ( CS ) from failing and CH 9B to help UBS ( UBS ) absorb losses it may incur as a result of the takeover, the Associated Press reported Wednesday.

The vote was mostly symbolic as a parliamentary commission had already approved the rescue plan, which mostly involved guarantees through the Swiss central bank, not parliament,

In addition, the upper house of the Swiss parliament had voted earlier to accept the transaction that was announced on March 19 by Switzerland's seven-member executive branch — known as the Federal Council land headed by the Swiss president — along with the Swiss National Bank and Finma, the Swiss financial markets regulator.

Debate on Wednesday was expected focus on working out the differences between the two chambers, the AP said.

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More on the Banking Crisis and Credit Suisse:

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• U.S. bond investors look to sue Swiss over $17B Credit Suisse debt writeoff - report
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