Switzerland’s finance minister, having survived last weekend’s Credit Suisse ordeal, says she’s formed some opinions about the rules for winding down big banks that followed the 2008 financial crisis—namely, they don’t work.
“Personally I have come to the conclusion…that a globally active systemically important bank cannot simply be wound up according to the ‘too big to fail’ plan,” Karin Keller-Sutter told Zurich newspaper Neue Zürcher Zeitung (NZZ) in an interview published Saturday. “Legally this would be possible. In practice, however, the economic damage would be considerable.”
