Switzerland's finance minister defended the shotgun merger between the country's two largest banks in an interview with Swiss newspaper Neue Zuercher Zeitung on Saturday, saying the use of emergency law was necessary to stabilise the situation.
for 3 billion Swiss francs in stock and agreed to assume up to 5 billion francs in losses in a merger engineered by Swiss authorities to prevent more market turmoil in global banking.
Emergency law was used to enable the banks to reach a speedy agreement. Shareholders, for example, who would normally get a say in such a takeover were largely bypassed, which has angered some of them. Keller-Sutter said the Swiss government's executive Federal Council "only went as far as was absolutely necessary to achieve the goal of stabilisation".
"If we had done nothing, CS shares would have been worthless on Monday and the shareholders would have gone home empty-handed," she said.
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