We would like to stay optimistic but very often the reality does not give us the chance. So the latest news about state of European finance is not as optimistic as we would like it to be. Swiss banks have been among the worst affected by the global financial turmoil, ft.com reports.
“In Switzerland, there has been no public intervention in the banking sector. The private sector was strong enough to solve the problems itself and is well capitalised. Although the problems have not disappeared, they are on the way to a cure.”
UBS, the world’s biggest wealth manager and Switzerland’s biggest bank, has had to write down $43bn on risky US credits since the credit crisis broke last year. The write-downs have pushed what was a watchword for prudence and profitability into loss and had a negative impact on Swiss finance.
The problems at UBS, and concerns about Credit Suisse, which has suffered lower losses but is also highly active in US investment banking, have led to calls for tougher controls on Swiss banks.
Mr Roth indicated he supported such moves and, questioned whether Swiss banks should be more strongly capitalised, replied: “From a central bank point of view, more is better than less.”