Credit Suisse Rescue Package Retrospectively Rejected By Lower House Of Swiss Parliament — But There's A Catch

The lower house of Switzerland’s parliament has retrospectively rejected the 109 billion Swiss francs ($120.7 billion) of financial guarantees the government provided to Credit Suisse Group AG CS as part of a hastily assembled rescue package, according to a report.

What Happened: At an extraordinary government session held to discuss the lender's collapse, 102 parliamentarians voted against the measure, reported Reuters.

The votes are, however, largely symbolic as the government has committed the funds and lawmakers cannot overturn that decision.

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Switzerland’s upper house had voted in favor of the government guarantees, earlier on Tuesday.

Significant Challenge: Earlier, UBS Group AG UBS executives reportedly told shareholders that its unexpected takeover of Credit Suisse was a milestone for the industry and a significant challenge for the bank.

Describing the transaction as “the first merger of two globally systematically important banks,” Chairman Colm Kelleher sought to assure investors that it also meant “a new beginning and huge opportunities ahead for the combined bank and the Swiss financial center as a whole.”

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