The Swiss National Bank couldn’t save Credit Suisse, according to vice chairman Martin Schlegel who suggested that suspended interest rate payments on AT1 bonds could have provided some relief.
The Swiss National Bank lacked the means to rescue Credit Suisse, according to vice chairman Martin Schlegel in an interview with «SonntagsBlick», noting that the central bank had «no mandate» to save or take over the troubled lender.
«Liquidity [at Credit Suisse] flowed out much faster than the regulators in Switzerland and abroad had expected,» said Schlegel.
«Financial Relief»
On potential solutions to alleviate the liquidity crunch at the time, Schlegel said that Credit Suisse should have suspended interest rate payments on its Additional Tier 1 (AT1) bonds at an earlier stage, prior to the controversial write-down.
«This would have meant immediate financial relief for the bank,» Schlegel added.
