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UBS. A BIG GIANT IN SWISS BANKING INDUSTRY "AFTER SHOTGUN WEDDING WITH CS." IS NOT SAFE SAYS TOBIAS STARAUMANN.

 Well known Economic Historian prediction is not solely about UBS. but because of notorious inability of supervisory Authority ( FINMA AND SNB.) he conclude that a major banking crisis in Switzerland is likely in Ten or 15 years. 

1. GLOBALIZATION RESULTS IN CAPITAL MOBILITY HENCE MORE BANKING CRISIS. 

2. WHETHER THE GOVT AND AUTHORITIES IMPLEMENT A REGULATORY FRAMEWORK THAT CAN AVOIDED A SITUATION THAT LED TO CS. DEMISE? 

a) 
Straumann said measures to reduce high-risk transactions by large banks have been demanded by the federal government for 25 years. 

THAN WHY SUCH DEMAND COMES TO NOTHING, IS DEFINITELY A  CRUCIAL QUESTION.

Economists Armin Jans, Christoph Lengwiler, Marco Passardi wrote in their Analysis, 
"Crisis-resistant Swiss banks?
The regulation of own funds, liquidity and "too big to fail"
 that despite all the preparations, the liquidation of a major bank will remain an adventure. 

b) 
FINANCIAL FIRE DEPARTMENT
Tobias straumann compares avoiding a banking crisis to fighting fire. 
In addition to building regulations and building insurance, what is needed above all is a financial fire department that intervenes during a liquidity crisis or bank run. It can set limits for capital withdrawals, extend collateral for clients, or impose stricter regulations.

c) 
CURING IS NOT CURING BUT A PROBLEM.
FINMA. ( SWISS FINANCIAL MARKET SUPERVISORY AUTHORITY) AS A PROBLEM FOR SWISS FINANCIAL INDUSTRY AND FOR SWITZERLAND. 
Finews.asia's Claude Baumann writes:
"In the aftermath of Credit Suisse, international rating agencies see Finma as a problem for the Swiss financial industry and for Switzerland."

d) 
FINMA'S COMPETENCY AND SNB. AUTHORITY.
Mr. Claude Baumann concluded:
"Calls to build up more competence at Finma and increase the SNB's willingness to place its authority increasingly in the service of the supervisory authority might seem a stretch but shouldn't be dismissed out of hand."

SOURCE:
https://www.finews.asia/finance/39929-tobias-straumann-ubs-bank-crises-interest-rates-globaliyation-finma-snb




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