Finma chief steps down citing health toll from ‘permanent stress’

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The head of Switzerland’s financial watchdog resigned, citing “permanent stress levels” taking a toll on his health, months after UBS AG orchestrated a bailout of Credit Suisse.

Urban Angehrn has been Finma chief executive for less than two years and has played a key role in negotiations for the biggest bank merger since the financial crisis.

Finma announced on Wednesday that he would resign at the end of September.

Angorn said in a statement that the job’s “high and persistent stress levels” had had a “healthy impact” on him.

“I have considered my decision carefully and have now decided to resign,” the 58-year-old added.

Finma is being sued by Credit Suisse investors, who lost billions after the regulator signed a move to burn $17 billion in bonds as part of a UBS takeover.

The measure has been particularly controversial because Credit Suisse shareholders retain part of their equity value, upending traditional investor hierarchies even though Swiss law allows it.

It was also asked how Credit Suisse got into such a precarious position that it was forced to accept a bailout from a longtime rival, prompting Angorn to release a report. defense Swiss newspaper NZZ published the regulator’s message in July.

A report into the Credit Suisse collapse last week commissioned by the Swiss government found that the Swiss Financial Supervisory Authority was too weak to respond adequately to the banking crisis.

this ReportThe Financial Market Supervisory Authority, written by a committee of eight academics, bankers and former regulators, concluded that the Financial Market Supervisory Authority lacks strength compared with its international counterparts and struggles to enforce its will in the country’s banking sector. It is recommended that the Financial Supervisory Authority be given greater powers.

The regulator has just 550 staff, compared with thousands of other regulators, such as the UK’s Financial Conduct Authority.

Effective October 1, Angehrn will be temporarily replaced as CEO by his deputy, Birgit Rutishauser.

Finma said Angehrn was instrumental in responding to the Credit Suisse crisis, which it called the “biggest challenge” in its history.

“During his tenure, Urban Angehrn has had to tackle and be responsible for a large number of tasks in various areas beyond day-to-day business,” said Marlene Amstad, chairperson of the regulator.

Separately, on Wednesday, the Swiss Federal Council, the country’s seven-member executive body, reappointed the existing Finma board for a three-year term, including former Deutsche Bank executive Rene Keller. .

Angehrn, a 14-year veteran of Zurich Insurance, spent part of his early career at Credit Suisse, although Swiss policymakers have been criticized for their decisions around the bank and He faced backlash for a lack of consultation with other regulators, especially regulators, but he remains widely loved by his international peers. European Central Bank.

UBS last week reported a record second-quarter profit of $29 billion, driven almost entirely by accounting gains from the Credit Suisse takeover. UBS shares have risen more than 30% since the bailout deal was struck.