Switzerland Risks Becoming ‘Financial Banana Republic’ – Industry Expert

- Switzerland Risks Becoming ‘Financial Banana Republic’ – Industry Expert
by https://www.rt.com/
The banking crisis has shattered the country’s reputation as a pillar of the Western financial system, CEO of Opimas claims
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The troubles of once-major Swiss investment bank Credit Suisse is undermining Switzerland’s reputation as a global financial hub, says Opimas CEO Octavio Marenzi, as cited by CNBC on Tuesday.
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His warning follows a historic takeover of Credit Suisse by the UBS Group, its domestic rival. On Sunday the two banking giants announced a Swiss-government-brokered deal aimed at shoring up public confidence in the Western financial system and at averting a global crisis. UBS agreed to acquire the embattled bank for three billion Swiss francs ($3.2 billion) as part of a cut-price deal.
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“Switzerland’s standing as a financial center is shattered,” Marenzi reportedly said, adding that “The country will now be viewed as a financial banana republic.”
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“The Credit Suisse debacle will have serious ramifications for other Swiss financial institutions. A countrywide reputation with prudent financial management, sound regulatory oversight and, frankly, for being somewhat dour and boring regarding investments, has been wiped away,” Marenzi stated.
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The landmark merger, which may well turn UBS into the world’s largest wealth manager, with more than $5 trillion in total invested assets, has nevertheless sparked concerns about the health of the acquired assets.
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