In March, the Swiss National Bank announced the acquisition of Credit Suisse by UBS, adding that it could grant UBS a liquidity assistance loan with privileged creditor status in bankruptcy for a total of up to 100 billion Swiss francs after the takeover.
The National Council, the Swiss lower house, turned down the proposal on credit guarantees and risk minimization concerning large banks for the country's economy by a 103-to-71 vote with eight abstentions, despite the earlier approval by the parliament's upper house, the Council of States.
On Tuesday, the lower house rejected the initial credit guarantee proposal following a five-hour debate on the issue.
At the same time, the vote was rather symbolic as it will not affect Credit Suisse's acquisition by UBS since the deal itself and necessary loans were approved by the government under the emergency law.
In mid-March, Credit Suisse’s share price plunged nearly 30%, sparking fears of a liquidity crunch. The incident followed the collapse of several US financial institutions, including Silicon Valley Bank. The Swiss bank soon announced the sale of more than $3 billion in assets.