MNI: Swiss Will Have To Step In Over Credit Suisse-Wyplosz

Swiss authorities will have to step in to recapitalise or sell Credit Suisse, prominent Swiss economics professor Charles Wyplosz told MNI.

"Credit Suisse is in a league of its own. It's been ailing for a long, long time. I think sooner or later, they will have to be completely recapitalised or sold," said Wyplosz, Emeritus Professor of International Economics at the Graduate Institute, Geneva, where he was Director of the International Centre for Money and Banking, in an interview.

"It's a very systemic bank for a country like Switzerland. The authorities have already dealt with a huge banking crisis with UBS during the financial crisis, and they did very well: they basically take over the bank and have all the risk borne by the shareholders. And I would expect them to do a similar kind of thing."

No spokespeople for the Swiss Finance Department or the Swiss Financial Market Supervisory Authority were immediately available for comment. An Swiss National Bank spokesperson declined to comment.