Hefty Credit Suisse Bailout Costs $13,500 Per Person In Switzerland

The CHF209 billion from the Swiss government as support to UBS AG UBS taking over Credit Suisse Group Inc CS is about 25% of Switzerland’s gross domestic product and exceeds total European defense spending in 2021.
The amount is also three times the CHF60 billion bailout of UBS in 2008.
The rescue is a hefty burden for 8.7 million people costing around CHF12,500 for every man, woman, and child in the country, Bloomberg reported.
Also Read: Saudi National Bank Hit With Over $1B In Credit Suisse Investment Losses.
The Swiss government committed CHF109 billion, with an additional CHF100 billion not backed by a government guarantee.
The renewed rescue for well-paid bankers sparked protests. About 200 people gathered outside Credit Suisse’s headquarters in Zurich, chanting “eat the rich” and throwing eggs at the building at the heart of the city’s financial district.
“We are fed up with the idea that if you are big enough, you get everything,” said Christoph Rechsteiner, a Zurich-based tax consultancy MME partner. “The law is changed for you over a weekend.”
“The solution that has been drafted now is that if all comes good, UBS makes a huge profit,” Rechsteiner said by phone. “They got Credit Suisse for nothing at all and the government is backing the losses.”
Price Action: CS shares are up 1.12% at $0.96 on the last check Tuesday.
Photo by Sharon McCutcheon on Unsplash