Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

SNB's Jordan Says `Too Big to Fail' Still Not Solved: FuW

Don't Miss Out —
Follow us on:

Sept. 13 (Bloomberg) -- Further regulatory steps might be needed to allow big banks to fail without dragging down the economy, Swiss National Bank President Thomas Jordan said in a newspaper interview.

“The too-big-to-fail problem isn’t yet fully solved,” Jordan told Finanz und Wirtschaft in a written interview.

After UBS AG, the country’s biggest bank, had to be bailed out by the government in 2008, Switzerland implemented capital standards that exceed the new Basel III rules. UBS and Credit Suisse Group AG need to hold at least 19 percent of their assets, weighted according to risk.

“What matters now is that banks implement the relevant requirements consistently and rapidly,” said Jordan, who previously headed the SNB’s regulation unit. “Whether additional measures will be needed depends primarily on whether the goal of an orderly winding down of major international banks is achieved.”

To improve their resilience, the SNB instructed UBS and Credit Suisse in June to improve their leverage rations.

“If the winding down isn’t possible, the buffers will have to be raised accordingly,” he also said, adding there were several possibilities, among them contingent-convertible bonds.

To contact the reporter on this story: Catherine Bosley in Zurich at cbosley1@bloomberg.net

To contact the editor responsible for this story: Craig Stirling at cstirling1@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.