'Too big to fail' cannot be a licence to behave badly

YOU have to smile. Switzerland’s federal prosecutor has launched an investigation into whether the takeover of Credit Suisse by UBS broke Swiss criminal law.

- Chris Blackhurst

This would be the same merger that was rushed through by government officials, regulators and senior executives at both banks to try and prevent what they believed would be a financial meltdown if Credit Suisse went under.

I am trying to picture how the inquiry will unfold, what level of interrogation, exactly, will be applied.

On the line, as Credit Suisse slid, was Switzerland’s reputation for solidity and probity.

“In light of recent events, the federal prosecutor’s office wants to proactively fulfil its mission and responsibility to contribute to a clean Swiss financial centre and has set up monitoring in order to take immediate action in any situation that falls within its area,” the Berne-based prosecutor said.

It wants to analyse the “numerous aspects of events around Credit Suisse” — including those reported in the media — to “identify and assess any crimes that could fall within the competence of the prosecutor”.

The office, led by the attorney general of Switzerland, Stefan Blattler, has been in contact with national and regional authorities and has issued a number of “investigatory orders” to gather information. His office is expected to interview key officials about the takeover.