Swiss Vote Against UBS Deal Could Be Binding, Legal Experts Say

Claudia Maedler
Updated ·1 min read
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(Bloomberg) -- The Swiss parliamentary vote last week against state guarantees for UBS Group AG’s takeover of Credit Suisse Group AG may prove more than just symbolic, some legal experts have told the Swiss media.

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The government has argued that no matter the outcome of the vote, the state’s 109 billion francs ($122 billion) in guarantees for UBS to takeover Credit Suisse are binding. The government says that’s because a small number of lawmakers — the financial delegation — gave their approval at the time the deal was negotiated in March.

Neue Zuercher Zeitung and Tages-Anzeiger, the main German language newspapers, cited the same emergency law expert who disagrees with the government’s assessment. Both reports also referred to specialists who agreed with the government’s view or acknowledged there was a gray area. One suggested that lawmakers might have voted differently if they thought their ballot actually mattered.

Blick am Sonntag cited a legal expert who said parliament’s views should count, but one needs to take into account what legal obligations the government entered into before parliament said “no.” Those remain in place due to the protection of legitimate expectations and legal certainty.

Meanwhile, the parties that opposed the guarantees — Swiss People’s Party, Greens and Social Democrats — are seeking clarification, Tages-Anzeiger reported.

“What applies must now be clarified,” also in regard to future emergency decisions by the government, said Gregor Rutz, from the SVP, who also spoke of a legal gray area. He is planning to submit an application to the state political commission next week for an investigation, Tages-Anzeiger said.

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