FINMA Orders Audit of Credit Suisse's Crisis Management

​​The Swiss financial market regulator, FINMA, has initiated an extensive audit into Credit Suisse's management of events leading to its collapse in 2023, culminating in its acquisition by UBS. The Swiss newspaper SonntagsZeitung reported that the audit will investigate the 15 months prior to the merger, during which various critical decisions were made by the bank's leadership.

Close to a dozen current and former employees from both Credit Suisse and UBS have already been interviewed as part of this process, which was commissioned to the law firm Wenger Plattner.

This audit follows a "secret" order issued by FINMA in September 2023, which aimed to scrutinize whether the then-management of Credit Suisse misled authorities about the bank's dire financial situation.

Key areas of inquiry include the timing of when it became evident that Credit Suisse could not be salvaged, as well as assessments of its liquidity, equity, and overall management performance. FINMA previously noted in a December report that Credit Suisse was on the verge of imploding months prior to the takeover, advocating for enhanced regulatory powers to oversee financial institutions.

As a parliamentary committee continues its investigation into the handling of Credit Suisse's demise, Swiss authorities are also considering a range of new measures, including stricter capital requirements for UBS, aimed at preventing similar crises in the future.