[Music]
ments he made clear

that the Federal Council
had to make decisions in the last few days, our top
priority was to protect the interests of Switzerland
and it was about making a contribution
to stabilizing the international
financial markets because protecting and protecting the Swiss financial center

to also protect our national economy
a failure of CS would have resulted in serious
economic upheavals in
Switzerland and other countries
already in the past few
months and weeks, the
financial debate, in close cooperation with
the Federal Council and together with the
Financial Market Authority and the
Swiss National Bank, has examined the situation
closely followed on the financial market and
various scenarios developed
last Wednesday, March 15,
due to the turbulent developments
on the market, it then became clear that
Credit Suisse's liquidity was no longer secured
in coordination with the financial debate,
SMB and SMB therefore attended
the Un  collateral on the
market and the SNB
made it clear that it would make
liquidity available to CS if necessary

in order to ensure liquidity in the long term

First of all, last
Thursday, March 16, he decided

to create the necessary legal basis so that the Swiss
National Bank can guarantee the affected institution
additional liquidity assistance. You
heard that
the Swiss National Bank

guaranteed the so-called

other countries, but we have expanded
this option with this Federal Council ordinance
so that the
National Bank
could provide additional liquidity. We did that
on Thursday and it
is also on Thursday  entered into force
the second measure that we
took last thursday is that the
SMB was also granted a selection guarantee
for liquidity loans in the amount of
100 billion francs i will
come back to this later
so we both made these decisions
on thursday at the same time as
the  To ensure liquidity,
my department pushed ahead with work on a
sustainable solution. First
talks with UBS and CS

took place last Wednesday afternoon, March 15. In the
days and hours that followed,
negotiations were pushed ahead. The
Federal Council was constantly

strengthening and pending questions
I was also
in daily contact with colleagues abroad,
in particular my colleague Janet Yellen from
the USA and Jeremy Hand in the UK Both
financial centers are of course important and
also play an important role in these financial centers now

the negotiation could now  en between UBS and
CS
to achieve this solution was the goal
of the Federal Council it is a solid
solution which the Federal Council welcomes this
solution is suitable now to stabilize the situation of
CS and also
to give the financial markets security
for this merger  Were
further resolutions necessary, which we
made today? Specifically, the
Federal Council issued a guarantee of
CHF 9 billion in order to
reduce any risks for UBS.

This guarantee is about potential losses on a very specific portfolio that UBS assumes as part of the transaction  but only comes
into effect if any losses of
UBS exceed a certain threshold,
so you have to
imagine that it is like an
insurance policy that only comes into effect
if there is actually a loss
and first UBS would
bear these losses and then in the second rank
the  Bund just would this
Guarantee from now on,
ladies and gentlemen, allow me to go into
a few more remarks on the
resolutions that the Federal Council
already missed on Thursday to secure
liquidity. These resolutions
were necessary and consistent in order to be able to
restore confidence in the market
Secured
liquidity loans from the SMB are
linked to various conditions in order to reduce the
risk of loss for the SMB and also for
the state. This includes
the bankruptcy privilege and a
risk premium that the bank
must pay on the loan. The President of the
National Bank will
make further statements here and  explain the instrument
this liquidity assistance
was an internationally
recognized instrument this is the
so-called public liquidity bagster
this instrument is
already being used in other financial centers in
Switzerland or has not yet been approved by

the Federal Council  Its decided a year ago

to also introduce this instrument in Switzerland, which
should have been implemented in the next few months as a sideline to the draft law.

After the situation has
worsened in recent weeks and days,
the Federal Council has
now introduced this instrument for individual cases in
all decisions  of the Federal Council
on Thursday and also today it is
about emergency law that the Federal Council

has issued based on Article 184 paragraph 3 and Article 185 paragraph 3 of the Federal Constitution,
but the constitution also stipulates that
emergency law is limited, which means that
ordinary law must be replaced
and the Federal Council is planning

to submit a corresponding bill to Parliament within six months

for the state
support service, a
guarantee loan from the federal government is required the
guarantee loan includes the selection
guarantee for the liquidity support at
the SMB, i.e. the guarantee  The tie to the
SMB and the limited loss guarantee
to support the assumption of this
commitment credit require the
approval of the finance delegation of the
federal chambers the
finance delegation approved
the commitment credits this afternoon
and I would like to thank the delegation
on behalf of the Bundesrat

the technical details of the
Federal Council resolutions, we will
then also answer these questions

sitting here in front of everyone who
has worked day and night over the
last few days that this solution

has become possible in favor of Switzerland I will conclude with this the
Federal Council regrets that CS
was not able to overcome the difficulties a
Mastering it on your own would have
been the best solution, we regret this,
not least because many
thousands of employees are affected,
but we are convinced that
employers will also give you certainty as soon as possible,
this
is also our expectation that you
know how things are in  The
Federal Council also regrets that the bank,
which was once a flagship institute in
Switzerland and was part of our strong
standards, was able to get into this situation at all.
Credit
Suisse still has many solid
parts today. It has very good employees.
It has
one in particular  recognized Swiss bank, but
unfortunately the loss of confidence on the part of the
markets and customers could no
longer be stopped with the takeover by
UBS, this trust should be
restored

rise  However, the risks for
the state for the taxpayers the
taxpayers the financial center the
business location for our country
as a whole but also for
international financial stability are
significantly lower than in any other
scenario I would like to
repeat once again the failure of a globally
systemically important bank would have serious
economic upheavals in
Switzerland but also worldwide
Switzerland also had to assume its
responsibility beyond its own
national borders The
Federal Council is convinced that the
takeover of CS by UBS
will create the basis for more stability
both in Switzerland and
internationally the bankrotsee superstitious
system

Thank you very much  Vice-Chancellor the
Federal President Madam Federal Councilor,
ladies and gentlemen, I
would like to give you the perspective and the role of the
SNB in ​​this extremely important and critical issue for our
international financial center and the
Swiss economy

i would like to briefly summarize the course of this crisis from
our point of view
we have been
in an extraordinary situation since last week
with the current us banking crisis
the crisis of confidence at Credit
Suisse has also intensified
this had a direct impact
on the liquidity situation of the bank in
the outflows from the positive
accelerated sharply therefore,
since March 15, the Swiss National Bank has

made a large volume of liquidity available to Credit Suisse in order to
help stabilize the situation.
A significant part of this liquidity
consisted of
foreign loans

and to give Credit Suisse some breathing room
they were necessary and to ensure the
solvency of Swiss they
offered the bridge for
a stable solution which addresses the causes
of the loss of confidence
a bankruptcy of Credit Suisse would have addressed
serious consequences for national
and international financial stability and
thus also for the Swiss
economy.
In the last few days,
Bund Finma Essen
Bee and the two banks have joined forces to develop a
future-oriented solution

to support the successful
implementation of the takeover announced today
will the national bank now

provide expanded extensive liquidity which can be used if required

let me explain this briefly
both banks have unrestricted
access to the existing facilities
of the SBB via which they can obtain liquidity from the
national bank in accordance with guidelines on the
monetary policy instruments

beyond and based  Based on the
Federal Council's emergency ordinance,
Credit Suisse and UBS can obtain a

liquidity assistance loan totaling
up to CHF 100 billion, secured by a bankruptcy certificate

In addition and based on the
Federal Council’s emergency ordinance, the
SNB can grant Credit Suisse a

liquidity assistance loan of
up to CHF 100 billion secured by a default guarantee from the

Confederation

the new instrument for liquidity support
the publicity the backstop corresponds
to the internationally widespread standard
it is explicitly a systemically relevant measure by the Financial Stability Board
as part of the

tubecu-due disorderly failure

it was imperative
that we acted in this extraordinary and
urgent situation
and found a solution
Due to its
size and global network, Credit Suisse is classified as a globally
active, systemically important bank,
i.e. as a bank
whose failure could cause significant disruptions in the
global financial system
Serious direct
and indirect
consequences for Switzerland's reputation
This reputation is central to the
cross-border
wealth management business of the Swiss
banking sector and thus also to the
economy. The current
solution ensures
that systemically important functions
remain secure

their
deposits, on the other hand, the ability
to draw on open credit lines
or to roll over maturing loans
overall, it is a matter of supplying the
Swiss economy with the necessary
liquidity
against this background, measures must be
taken to reduce the risk of a
disorderly failure of a
systemically important bank and the
burden  for the public as
low as possible
the extensive provision
of liquidity ensures that
both banks have the necessary
liquidity
the National Bank thereby fulfills the um
e  r is fulfilling
its mandate to
contribute to the stability of the financial sector through the extensive liquidity assistance
and continues to work
closely with the federal government and the company for this purpose

This is an important step that serves to
protect depositors
and the reputation of the Swiss
financial center.
Since October 2022,
social media triggers have led to massive
outflows of customer deposits from
Credit Suisse,
but the bank has always met the
minimum regulatory requirements
both in terms of capital and in
terms of liquidity
this was only the case thanks to the high
regulatory safety

buffers the bank was able to absorb these
huge
outflows

even though the fun  damentanten
were basically in order, the
confidence of market participants,
investors and customers in a
successful future for the bank was increasingly
lost
the most recent banking crisis in the USA as
well as concerns about a general
financial crisis once again led to
massive market editorials he set in a
negative spiral the

the topic to fail precautions are
strongly geared towards solvent problems,
i.e. the solvency profile have, as I
said, the real
ability to absorb shocks,
but ultimately the loss of confidence
and the resulting problems were
too great, so the authorities had to
take measures,
it is clear  The company will
continue to monitor the takeover process intensively, just
as Credit Suisse has
monitored and supported it particularly intensively since October,
and will continue to ensure
compliance with all regulatory
requirements with the required
intensity  t and depth weeks, it
is also clear that the requirements, which are
now even greater,
will increase in proportion to the bank,
however, this will only be the case after the merger phase is over

is maintained at all times

the custody accounts and other
services remain accessible in the usual
way
it shows that the players in the
Swiss financial market the Confederation can find the
National Bank
solutions to
face crises and overcome them
the solution presented today the
takeover of CS by UBS  together
with stabilizing measures by the federal government
and Essen in matters of liquidity and the
conversion of
corresponding
capital instrument capital ordered by the company, brings
stability for the
bank's customers for the financial center and for the
financial markets in general e

ladies and gentlemen  n
today marks a clear turning point it is
a historic, sad and very
challenging day for Credit
Suisse for Switzerland and the global
financial markets since I took on the role of
Chairman of the Board of Directors around
a year ago, it has been clear
that things cannot go on like this for
good  Uli Körner has been
in office as CEO for seven months he acted decisively from day one
and
filled key positions he

worked tirelessly with his team on the cultural transformation and strategic realignment of Credit Suisse
I have the utmost respect for Uli
Körner and his leadership team
Although we have achieved many of the goals we have set ourselves, we have
no time to complete
the restructuring of Credit
Suisse in a controlled manner. The
massive outflow of customer funds in
October last year was a
major setback

we started 2023 with a lot of vigor and energy

the most recent events from
US banks hit us at the most unfavorable
moment
like last year we were able to

overcome the deep uncertainty on the markets
but not this second time
the accelerated
loss of confidence and the escalation
about the  the last few days made it clear that
Credit Suisse cannot continue to exist in its current
form we are
glad to have a solution that I am
convinced will bring sustainable
stability and security for our
clients, employees,
the financial markets and Switzerland
it is one  Extremely difficult and
demanding situation, the
decisions were not easy in the
current situation, there is no cheap
choice, but the solution presented is
the best possible under the current
circumstances,
so it is clear that we now have to
concentrate fully on the future, our
clear focus is on our approx. 50,000
Employees and employees, around
17,000 of them in Switzerland, they are
committed day in and day out for our
private customers, SMEs and corporate customers,
we will again be a reliable,
stable and competent partner for
our customers,

UBS is an excellent and
strong bank, I know it well, it will be
together with kreditsuisse, meet the
upcoming challenge with great
discipline know-how and a feeling for what
is feasible our employees
need stability our customers
need security and Switzerland and
the financial market need calm and
reliability
ladies and gentlemen we are now
looking ahead to the  The merger
with UBS will
bring back the stability and security that is urgently needed

it was said that the Federal Council
decided on Thursday

that it was necessary to restore trust,
but he did not communicate it, so how should
the effects then unfold or why are
you only telling us this

evening that the crisis has become
Swiss National Bank asked for this
liquidity help and on
Thursday we
extended this liquidity help and also

decided this backstop,
we were actually convinced that it
was important to

get through to the weekend to
ensure liquidity as trouble-free as possible and
on Sunday that was our goal
by Sunday at the latest  to be able to present a package
if we
had come to Thursday and said yes, by the
way, the Federal Council has approved another 50
billion in liquidity for the
National Bank and the Federal Council itself
has also granted liquidity
to the National Bank in the amount of
1  00 billion guaranteed there would have
been uncertainty for the markets
that was the unanimous opinion of the
film at the National Bank and also the
financial debates we
discussed it and that would have led to much more
uncertainty his
salami tactics now come every day a little
more 50 billion underground too
100 billion more that would not have
been security if of course if
it had been the case that the backstop
would have had to be touched if the 100
billion from the National Bank
had already been used up then we would have
communicated that is clear because then
we would have provided security but that's how
we were  Opinion that this
would have led to more uncertainty,

I have now understood correctly
that the shareholders, the holders of
convertible bonds, the obligatory
lenders and so on, are now
getting off scot-free, so that we are
actually saving the Saudis, in particular
their boss on Friday evening last  The one who

is part of the
regulation that is intended in such a way that
the corresponding bonds, which are
not held by investors
but by parents and large
investors, are
then converted into equity and
this  Part of the fail regulation has
now also been triggered here,
so you also have a
stake in those you mentioned.

That is of course a painful
solution for those who
hold such stakes, but it is a
correct solution in terms of regulatory policy,

lessons  of the financial crisis was that
be no more public Pellets of banks
and the fire one created and decision
today Creator

in
privates and this

if I understood you correctly
before you said rumors
against the CS had led to this situation
and the weakening of the CS  does that mean
they actually say there was a
campaign against  en the CS and if so
you know who is behind it

that wasn't in the sense of a campaign
but I referenced this Twitter
situation in October the
Swiss was already weakened beforehand and
then various rumors at the time

really fueled these capital outflows of liquidity
behind it is music
to be discussed the fact is that it was
there at the beginning and then
drew further spirals and then old ones to
these really well-known and I think I have to say
historical
outflows felt and it
is important to increase again that this
this fact that  that is critical
this situation was like that back then in October
that is
due to the fact that we
have a regulation with strict with high
liquidity requirements the company
also has the so-called Piller 2
i.e.
higher
liquidity requirements specifically tailored to a bank the
devices issue the  itself has also
held even more liquidity and
all of this has contributed to

tomorrow
morning the stock market prices will
fall again, if at all, UBS

We really thought so
and we were very
committed to helping both sides
liquidity to one side and
finding a solution where it  goes
between the two private actors I
think but you also have to see that we
still take our time now I mean I
think that is a very strong
commitment today from Switzerland
official Switzerland the authorities
Bundesrat Fielmann and essen.de
is not much stronger  we just
did everything we could do dami  t
that trust and stability
can be guaranteed but of course
that would have and we'll see
what happens over the next few days months but I
think we really did have a very strong solution in a
situation that wasn't so easy, you have to
say,
and the first reactions  Abroad
my colleague had spoken about the
contacts she had internationally
I also
had international contacts would be the solution the
first reactions are very positive are
very positive and we also have the
commitment that people simply
understand what we have done in
others  countries and the commitment was
that they are very grateful that this was
done and they will also
help that is for the international
part but back in Switzerland
it is also extremely important in Switzerland that
we present a good solution because
it works  not just about the stability of the
financial center, it is primarily about Kai
has to be about priva  te the simply the simply
Conti have given us loans for
companies it's about the
employees and it's really about
payment transactions it's about a lot for
our country that means we believe
we are firmly of the opinion that it
really brings a good solution

addition to it  UBS has a very
profitable business model a very
robust business model we
also have a business model with
relatively low risks and through this
it is possible to transfer the trust that
the rupes are present to
all activities from credit
and that should bring
stability here  we also have
the necessary funds to bridge the next few days
so that should actually be
a consequence i can also
confirm that on the part of the
central banks internationally all my
colleagues from the relevant central banks

support this takeover from a
supervisory perspective too  so that  also applies
to the supervisory authorities who are
in contact with us and we have
a very well established,
solid bank at UBS and are therefore convinced
that we have found a very viable
solution here and
if we are convinced that we can really do it here in this
way

Blumberg has also found a future-oriented model. I just understood Mr. Keller here
to mean that UBS
intends to keep the swissbank of the credits,
so I'm wondering if there are
n't
problems with competition law because
they have a
very high market share in Switzerland, what about the
second question?
any options for UBS to
withdraw from the deal or
are there no options at all granted
by UBS to

withdraw from the thing these two questions
thank you

gives us the competence in this case in
terms of financial stability then the
competitive situation next to it  to
overwrite and  d we have
we have also
made use of it here

I have a question about the
paprika

the Federal Council

announced almost exactly a year ago that it
wanted to introduce this instrument it would not have
been appropriate because it was also about  Above
all, trust comes from the fact that this
instrument
was introduced last autumn, or why was
n't it done? Has it been considered?
Yes, the Federal Council is correct
to say that a year ago it decided to have a
service proposal drawn up by it through the
financial debate
and in  In fact, at that time we were still under

discussion in the Federal Council under my predecessor Ueli Maurer, I say that and to
be very transparent as to whether this should now be

accelerated

now suddenly so easy
to come half a year earlier  would have happened to be
heard with this
then that would certainly have
raised questions and we then coordinated with the
Federal Office of Justice and
said if you should actually need it
then
it would be possible to make use of emergency law
we will but anyway I
said so  By the way,

a week before the
events in the USA I had an
internal meeting where I
had approved the work, so to speak,
that we should now accelerate, but there
were also reasons not to do it at the time, so
we didn't accelerate it at the time
in the Bundesrat so as not to
unsettle one more question

just very briefly so it would
not have stabilized at this time in October
but had a destabilizing effect and
now he actually has a problem
that the authorities at the National Bank
were not able
to provide the liquidity but we  had
an extremely fast rapid  n there was a
loss of trust and
the instrument was then
additionally activated for that, so it would
not have helped at the time, on the contrary, and
now the instrument was available for a very short time

to create this bridge here, so that one
had time until the weekend  If
you had found a solution beforehand,
that wouldn't have helped here now,

of course, speculation, so you've

set up rescue companies for the energy industry, so
that's just a side note, but I would like to be

able to ask Ms. Keller Sutter one more question  You quantify the financial
risk that the federal government
has taken with all these measures what the
financial risk is manageable
maybe the President of the
National Bank can say something again about that
or I already said concern
we don’t make any kind of cash we
don’t give money to UBS or  to the
credit but it is a guarantee
g  compared to the National Bank for
liquidity but one must also say that
this perfect would also have
come into play in other scenarios, for
example if one
had sought nationalization of the bank, if
the federal government had taken over the bank, a
tipi would have been
needed  or
it would have been necessary for a restructuring, so this PLB,
this temporary
provision of liquidity would actually have been

thank you very much, this liquidity aid
is equipped with a bankruptcy letter
both for the National Bank
and then for  the tranche that the federal government
guarantees the SBB for the federal government and that
has to be seen relative to the capital
that is then present on the balance sheet
and there is a relatively large part
that is first to absorb losses
and then the bankruptcy privilege is
set at a level because I  the
federal government and the National Bank ei  n a
manageable risk, as the
Federal Councilor had previously said, is
actually taken by this bankruptcy
privilege being set relatively high up in the system,
the risk is then

yes, thanks for the opportunity from SRF and
Swisscom, I have one  Question about the
liquidity aid of the National Bank if
the collateral has to be deposited
and how
high is the interest on it and secondly
I would be surprised how high this
in the company media release is the
commitment premium called for the
default premium guaranteed Bundeswehr
is high because this commitment premium  thank you very much

for this question, we
have different types of liquidity
that we make available to the banks
in special situations, so to speak, the
first tranche is traditional
Ella or
assistance, which is against collateral that
the banks can deliver to us because
mortgages or assets  letters
are delivered and then comes a
second tranche that we call Ela plus
that is where we
face a bankruptcy letter then
give this liquidity the banks do not provide

sufficient security for this
loan is ensured by the privilege
and then the tranche
above where we then with  the public
liquidity the backstop
can spend this liquidity there we have the
guarantee of the federal government and the federal government
also has the bankruptcies how many sets
both Ela plus and
the liquidity that we go with the public
liquidity the backstop which is
provided with a risk premium  who are entitled to
both the floor and the food
then the corresponding
thank you very much the two questions have been
answered we can take the next
Mr. Bühler how high are the interest rates
sorry what are the interest rates look

back is always easy
and put a finger somewhere it
is simply a fact that we
certainly  since 2021 greensiel and
arjados have not been out of the headlines
we have simply been
caught up in legacy issues they have been
caught up in by risks that
materialize last year we have been
caught up in a
business model that
just doesn’t work in this market environment
and many customers and  Customers have
been very loyal for a long time
and
last fall it was something about this
social media storm that had an
enormous impact, especially
catfish people private customer market few
institutional and the professional
market and sometimes
the drop just comes too much suddenly
being too much or that's exactly the point at
which we've arrived it's an
accumulation of things that
have built up over many, many years and
that just materialize somewhere
and all of a sudden the
camel's back is broken

20 minutes a little less  technical
question a lot  easily then, Mrs. Federal Councilor
Keller Sutter,
what do you say to many, many
people in the country who may have
all their savings here with Credit Suisse
and have been worried in the last few days
whether their maybe
400,000 francs are really still safe,
you can promise him that they will
today  can go to bed calmly when

the mortgage, so I have quite a broad
customer relationship and I believe that
what we have done now
is really to protect exactly those
people who have money, the
criticism of the SMEs is to
protect the continued payment of wages
to keep all payment transactions going and also to
secure the deposits,
of course, there was also
deposit protection or a hundred thousand
francs, that is guaranteed, but that
the bank really continues to function,
that the salaries can be paid out,
that the companies
can and that the payment transactions
work, that's just it  through this
solution  That would have been
very difficult in special scenarios
I am grateful myself as a
customer that it worked I
also have an account with Robe as well as every
Swiss woman and woman you have to
diversify a bit so I’m also
glad

Johannes Brinkmann from AWP had
them  couldn't have done it all cheaper
if they had already voiced
their support for CS last weekend
when Janet yellen
Joe Biden Olaf Scholz and others voiced their
support for the financial system
and then my
second question would be when will the
merger go through and the third
question
and then maybe we'll come

back to the third party I'll give you the floor again later, thank
you, well, you just have to see the system in
Switzerland, the process in
Switzerland is such that if a bank
has problems with liquidity, then
it can get liquidity  ie a major bank
or in it can liquidity at the
national bank b  I note
that Credit Suisse
applied to the National Bank for Ela on Wednesday. That
's the procedure and afterwards the
Federal Council increased these
liquidity checkers, if you will, so
these liquidity
levels. It was in no way about that at the weekend,
so it has to be
not at all a question of the
finance department but it is a
question of the company or if the company
has to tell women instead if
the company comes to the conclusion together
with the national bank that a bank
is not viable then it is up to you
to act but the cred  its submitted its
application to the National Bank on Wednesday,

the situation was such that it
changed dramatically and on Monday it
was actually still quiet in Switzerland,
that only happened on
Tuesday afternoon and then it got into the course
of Wednesday, as I
said before  There has been a
dramatic change
spiraling down the
system  pulled and the
liquidity agreements were massively increased and
there you had to act with the liquidity
and then put together this package within these very
few days, also thanks to this
liquidity aid  to

repeat once again so
we have many
regulatory requirements we have capital and
liquidity regulations
accordingly who are the
relevant key figures are to be
complied with if a
stressful liquidity situation such as
we just saw at the
beginning of this week to the middle of this week
then there is the possibility that the
bank will  Cars can make the SMD
can tackle to get liquidity there
in a further step then the
company is active if it
should really come to the insolvency
or then just the
so-called point of no wayabili  ty
then the company would then initiate appropriate
reorganization measures or bankruptcy,
but
this could be avoided here and
this solution was found beforehand

I would like to get back to the
point about the size
of the SMB  publishes
this stability report every year
where you can see very nicely that the banks

are actually already two of the largest in Switzerland if UBS
now takes over CS you have a
size of about 200% or over 200% of
GDP as how big see  You have

already emphasized this problem, that the fail
system already provides that if
a bank grows, whether
organically or through a
takeover, that this is then also reflected
in higher capital and
liquidity regulations, in addition to
capital and liquidity, there are also
corresponding ones  Provisions for a
possible unbundling, so that in the event of a
crisis,  n can
also unravel and split off the system-relevant parts accordingly
and
that is already provided for in the tubidual framework
in the sense that it is not
fundamentally new the only new
element here is now that we

can of course not install Monday, so to speak, but that there is
a transitional phase here  conditionally

and then we'll take Mr
Jordan again first and then

of course an important and I think
if a bank exists on this scale
it's all the more important
to follow the aspects of financial stability closely it's
a job for the National Bank
and the company to do that and of
course that too  It is important that
competition aspects are properly
taken into account, but I
assume that it is also in the interest of the
banks and UBS itself that they

behave correctly in this regard and I have already
said that it also depends on the
business model if you  a
big bank have the in
asset management is where the risks are
well intentioned are manageable
then that is something different than when the
bank of the same size is just inactive
which are very volatile and

can also lead to rapid exit due to market changes or to
liquidity conclusions that I believe are
very important  In addition to looking at the size of the
business model, there were
risks and then also the ability of a
naturally reliable company to
correctly assess this situation  there has

never been a reorganization or
bankruptcy, you have to say, or a
resolution in management with the
splitting up of a part, or the
question always comes up, yes, why did
n't you just let the group
go bankrupt and
continued business in Switzerland, that's with a
systemically important one  A bank of this size has
never happened before and I said it before
that would have had a major impact
on the Swiss financial center,
or the connection between UBS and
kreditsu is of course inherent
to the other banks and also to
the international financial markets
So I would say
almost certainly triggered a financial crisis,
but or the question is
interesting in that I've also
thought a lot about it in the last few
hours
and now you have a
case of this actually not
really clear conflict and actually
you can use these instruments until  now on
at one or something that is intended almost
not apply and that simply shows
that there are always other
constellations where and that was
so difficult and you
had to quickly find another solution that just has a
stabilizing effect and causes the least
collateral damage but you know
You can trust them  don't
regulate you can also
say don't regulate cultural mistakes
away
that's another
story,

of course, the difficulty that
all this took place in a very fragile
market environment,
so if it
had been in a different situation then
you would now have the usual framework of
a
process  then also be able to assess differently,

from the federal government and up to 9 billion francs
for a portfolio,
what exactly is it about is the
tricky business, as you can

see, UBS has
carried out a diodeligence, but these legends could
not be carried out in depth
as is normally the case  it would be usual,
she has found that there is also
a portfolio with stocks that
can be problematic, that have to
be written off, that
may just generate losses in value
and we have
agreed that the federal government comes in second
place in first place, UBS in
second place  here a certain  This loss
carries a risk of default but that happens it's
like insurance or it wo
n't appear
anywhere in the federal books it
's a guarantee that would only come into play
if the case actually happened
how this portfolio
looks like maybe you can say  something
about destructure

in this constellation the company has
the right to take the place of the alarm clock,
Weco is being consulted and in the
interest of financial stability the
company can approve this merger in the
interest of
financial stability

[Music]
can

cause problems and that means that now in
relation to any expectations of the
bank in terms of remuneration etc. I
'm talking
about enormous opportunities that you have
thanks to this name,
yes, we are grateful to UBS,
but we are also grateful to CS
grateful to have this merger in
mind i have  it said the stability
of the Swiss financial center the creditworthiness of

Switzerland for the stability of the
Swiss economy that this
merger has really come about now,
also internationally or that
one forgets that I would like to emphasize it again
that any other solution
would have
triggered a financial crisis in real entregime and  that would have been very
difficult and it
took both or to show a willingness here
and it also took the federal government
to provide certain guarantees they
heard liquidity and so on,
we
think that was the only possible
solution I still want  once simply that
you are aware of the scenarios
that you would otherwise have had to
pursue a tipi the
federal government would have bought Credit Suisse
imagine the fort at least
temporarily there are such there are
examples of tpos there are states that
are still sitting on  their banks so
that would be a huge  s been a risk for
the taxpayer then the restructuring
we have already talked about that
would have been difficult or even a
liquidation of the bank that would have really

put the Swiss financial center under pressure and also internationally as far as
remuneration is concerned yes well that is
of course I mean UBS  not in
trouble or we ca
n't make any specifications here you know that
the specifications can only be made
if you help banks out of
trouble, so to speak, so the question is the
ban on dividends, i.e. if a
bank has to be rescued or the question
of remuneration for that  is regulated, but
if a bank is solid like
UBS, it can decide for itself

I don't see that as being in debt at all,
we are grateful that
this merger
came about, UBS is a
solid bank, we heard it  it's
doing well in the market it's resilient
it's actually lucky that we're on
the Swiss financial center has its bank,
which is now involved,
also in terms of Switzerland or I think
they are right, so I think there is
a chance of need and of course
for UBS in this deal too, but there
are also risks and I
say that's it  not easy
to find each other here because it was it was there
were different interests
of course but in the end the
common interest of CS of UBS and
the authorities was that they want to stabilize the
Swiss financial center the international
financial centers the Swiss
economy and
that is it  a clear commitment
to our economy and our
financial center a commitment to the
protection of savers we
want to ensure that
all payment transactions continue to
work wages are guaranteed
the whole Kai must introduce themselves
SMEs are important customers of
creditism or all  that had to
be guaranteed and  that would not be
guaranteed no other scenario
we could really
have guaranteed that and that is simply the higher
interest

the question how much has CS already
used this money is this
line of credit and will the brand disappear a lot
and to Ms Kelly  Sutter
you said that is not
a state solution, nationalization was
seriously an option and it is but
you also said a
state guarantee that you ultimately
give here how should the risk
behavior of the banks ever change if
in case of doubt you know you have this
state guarantee you wanted  do not
avoid that exactly 2018 with UBS
from last fall we do
n't need an extraordinary gridlimited by the
Swiss National Bank you saw
last week that was this week
we drew this 50 billion which
we also drew to
be careful that if you really need it
that it is just there and and that has
g  I think it worked very very well
regarding the fire the creative is on fire
like being there until the transaction is closed
and then please UPS
have to decide what the brand is like and I think
come indication

something about this question is that a
state solution or not it's just
not a state solution  we have a
private bank that buys another bank
in this scenario there is
liquidity support, yes, it would have
existed in all other scenarios and
this guarantee is a kind of
default guarantee, I have already said
something like an insurance policy if we
had done TPO that  Talking to you
that also kicked me over tippiot
temporate public without what would you have
done then 15 years after the
financial crisis you would have said
we cannot really
use the instruments because they do not really
fit here but we are now taking over this
bank the federal government is also taking over this bank
all risks and that would
have been the state solution and that would then be
a  In fact, then you would have
perverted the idea, but of course we
also examined this scenario
because we didn't know whether
this merger would come about
and we simply knew from the company
and the National Bank, and Mr. Lehmann
also said that this bank was no
longer viable  is and what do you do
in such a situation or you
are right
when you say you don't want a
state solution yes that's why you made
the capital requirement, the
liquidity requirements and so on
and they also work
in principle and it would really be now
you would have really perverted it
if you now if the federal government is now
standing this bank you imagine the
federal government would have bought this big bank
now we have a private one who
bought it but it was needed it was

said at the very beginning of this media conference that needs an overall package if
you want stability and security in the
want to enter the market then you need it  also
the supervisory authorities, the
political authorities are needed to say yes, we
are behind this merger and
we are also providing this situation with
sufficient liquidity to stabilize the system,
this is an overall package
that you have to look at,
there are now, of course,
a lot of questions that we will still have
at some point we will come to a conclusion,
but we will take a few more questions
because then we can also
thank you very much online it is so
that almost all pension funds in
Switzerland are also involved in the afo AVV at the big bank
what happens now with
these very shares

but it  a purchase price has been agreed upon
and the previous
shareholders get this purchase price and
perhaps it should be emphasized again here, of

course, the shareholders will
lose money compared to what
they had a few weeks ago or
a few years ago on the other
hand  happens to the
stock price whom  n a resolution like this
had been passed and if the
bank had been declared bankrupt on Monday,
everything would have been lost for the shareholder,
you can see that the
shareholder still gets this price here
and you don't have to compare it with
what he used to have  but with
what he would have gotten if
this package hadn't been put together now
that I don't think that's the right
perspective and that actually applies to
all other capital instruments that
are also discussed in
exactly the same way

you can say whether tomorrow trading
with the  cs share is suspended and the
second thing I would like to know was that it was
also a topic of discussion in the Federal Council
to what extent the management

Credit Suisse management remains in
place now there is a short time as
described by Keller  for
the weeks leading up to the
closing of this transaction thereafter
the Credit  Swiss Coop is a
subsidiary of the UBS Group and
UBS determines the management and
board of directors of this
subsidiary

times four days mainly simply to
find a solution and not taken so much time
to simply
take into account the
past so not made a
lot of effort here already in  such a
huge job and very complex

Swiss television, which I still haven't
grasped, these 50 billion
are now another 100 billion
or is it a total of 100
billion that was given as liquidity aid

because that Helen mentioned and
Credit Suisse announced  has been

given by means of traditional normal Ela, that is, the emergency liquidity,
we have for Credit Suisse
a total of 50 + 100, i.e. 150
additional billion liquidity that
we can use
200 total if you that if you
already have the normal

i  was a bit surprised  If that
was said, you couldn't make any restrictions,
we now have a 200 billion guarantee from
the National Bank, 9 billion from the federal government
and then bonuses should continue to be
paid out without restriction from the

taxpayers who benefit from this guarantee  and
taxpayers,

but these are instruments of the
patient national railway card, already mentioned,
which are available anyway, or
this Ela, this

liquidity support, a
bank can withdraw from any major bank at any time
in Switzerland it
may not be that common, but
abroad it may be possible
say it happens again and again that
maybe a bridging is needed
we have increased this liquidity a bit
you have to say
compared to other countries
the
national bank makes liquidity available rather restrictively
when there are bottlenecks
or it is like that, for example  in the UK
or USA, that was also touched on somewhat,
the principle applies, for example, whatever it
takes, liquidity is simply
buttered in, so to speak, in order
to stabilize the problem and what we give is
a guarantee given to the national government,
not a guarantee to a
bank but to the national bank
and  That's why it has
nothing to do with this question. It would be different if
the state now had to
save Credit Suisse in a way, then
these provisions on
dividends and also on remuneration would
have been applied, but this is about
one  Guarantee to the
National Bank

Banking Act, i.e. if a
systemically relevant bank directly or
indirectly state aid
is granted from federal funds, the
Federal Council ordered measures in the area of ​​remuneration for the duration of the
claimed support at the same time,

so I actually think
state aid is already being granted here, at least indirectly,

but it is  important to note that the
liquidity support given by a
central bank to a bank
cannot
be considered as such government intervention
central banks provide
liquidity support in the face of
liquidity shortages in the face of
market developments that is not
comparable to a
recapitalization or purchase of
certain
and so on that  is a
liquidity aid that is either against
cholesterol now in this case
against a
privilege against a bankruptcy and
that is not comparable to what is
otherwise understood by a state aid

exactly
what the consequences of this merger will be for
jobs in Switzerland  many
jobs are lost