Do More With Reuters
Partner Services

Swiss commission to tackle "too-big-to-fail" issue

Wed Nov 4, 2009 9:21pm IST
 
Email | Print | | Single Page
[-] Text [+]

* Experts to make proposals to fix "too-big-to-fail" issue

* High-ranking regulators, bankers on panel

ZURICH, Nov 4 (Reuters) - The Swiss government has asked experts to come up with solutions that would prevent big banks and insurers from sinking the whole economy if they fail.

The commission of experts should consider solutions to the "too-big-to-fail" problem and present a report by autumn 2010, the Swiss Finance Ministry said in a statement.

While the commission's analysis would not be limited to banks' role, the issue was particularly clear with financial institutions, the ministry said.

Last year, the government bailout of Swiss bank giant UBS (UBSN.VX: Quote, Profile, Research)(UBS.N: Quote, Profile, Research) triggered discussions about how to limit the risks from large financial institutions for the Swiss economy.

UBS and Credit Suisse (CSGN.VX: Quote, Profile, Research) still have combined liabilities of almost six times Swiss gross domestic product (GDP) of around 540 billion Swiss francs ($526.8 billion).

The head of the Swiss Federal Finance Administration, Peter Siegenthaler, would lead the panel, made up of high-ranking regulators, bankers and government officials as well as scientists.  Continued...

Dubai Debt Fears

Villas are seen on the The Palm, Jumeirah, with Atlantis, The Palm, under construction on the breakwater (crescent), May 3, 2008.  REUTERS/Jumana El Heloueh

Banks outside the Gulf played down their exposure to Dubai debt, after fears the emirate could default and even derail world economic recovery prompted a sell-off in global markets.  Full Article | Slideshow 

India Investment Summit 2009
India Investment Summit 2009

Top executives and bankers discuss their own plans and the broader opportunities and challenges for India.  Full Coverage 

People stroll outside the Taj Mahal hotel ahead of the first anniversary of the militant attacks in Mumbai, November 24, 2009.  REUTERS/Punit Paranjpe
Investors worry about another attack

The risk of militants striking again worries investors who fear that a second attack similar to last year's Mumbai raids could shake the economy.  Full Article | Full Coverage 

Market Update

  • IndiaIndia
  • USUS
  • UKUK
  • Asia
  • Most Actives

road to Copenhagen

BLOGS

Photo
Calculated Move

Reliance aims big with $12 bln bid for LyondellBasell.  Blog 

SHOWCASE

Capital Raising
Capital Raising

Analysis - China banks' rush for billions could trip markets.  Full Article 

 
Photo
Bonus Payout

"Bonus" has become a dirty word on Wall Street.  Full Article 

 
Bubble trouble?
Bubble trouble?

With the BSE Sensex at around 17,000 points, are the Indian equity markets looking at a possible bubble?   Commentary 

 
Funding Blues
Funding Blues

A popular tactic used by Indian brokerages to raise money for rich clients is likely to be banned.  Full Article 

 
Recovery Path
Recovery Path

Indian techie logging out of downturn gloom.  Full Article 

 
Central Banks Cautious
Central Banks Cautious

Reuters tracks the policies of the world's top central banks as the debate over global economic recovery rages on.   Full Coverage 

 
Risky Proposal
Risky Proposal

Rupert Murdoch courts trouble if he blocks Google on news.  Full Article