By Enyichukwu Enemanna
Switzerland’s Parliament on Wednesday rejected a multibillion dollar acquisition of Credit Suisse by rival UBS in what has been described as a rescue package.
The vote was largely symbolic as the government’s commitment to financial guarantees cannot be overturned.
Authorities used an emergency law to bypass the legislative body last month to rescue the lender. The move angered politicians, and saw widespread criticism in Switzerland.
It was the focus of a strident debate between Swiss lawmakers on Tuesday, which ran into the early hours.
“A Credit Suisse bankruptcy would have had disastrous consequences for the country, for companies, for private clients, but also for the reputation of Switzerland. So, in this context, we had to act fast, the federal council had to use the emergency law”, Swiss President Alain Berset said on Tuesday.
Lawmakers were recalled to the country’s capital Bern this week for the rare extraordinary session to discuss Credit Suisse’s rescue.
The lender was taken over by rival UBS for over $3 billion last month. It was also backed up by $277 billion in guarantees and support.
