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Inquiry seeks to improve checks on SNB

The Swiss government yesterday appointed a special commission to examine ways to improve supervision of the Swiss National Bank in its first big step since the resignation this week of Philipp Hildebrand as chairman.

By Haig Simonian in Zurich

The Swiss government yesterday appointed a special commission to examine ways to improve supervision of the Swiss National Bank in its first big step since the resignation this week of Philipp Hildebrand as chairman.

Eveline Widmer-Schlumpf, finance minister and head of state this year under Switzerland?s revolving presidency, said the commission would look at the division of supervisory powers between the government and the SNB?s governing council to see if improvements could be made.

It would probably be ?a matter of a few months, maybe April or May? before a new chairman would be appointed.

The government has been under pressure to name a permanent successor amid calls from across the political spectrum for urgent action to restore stable leadership.

While the government is responsible for appointing the central bank?s boss, the 11-member council – comprising mainly regional politicians – formally supervises the SNB. The new commission could, therefore, raise fears that the SNB, which enjoys great constitutional independence, could become more susceptible to federal political influence.

It could also trigger friction between the federal government and Switzerland?s 26 cantons, which proudly defend their independence under the highly decentralised constitution.

Separately, Ms Widmer-Schlumpf said the government would wait for the council to appoint a new member to the SNB?s three-person governing board before deciding who would be the bank?s chairman, who also sits on the board.

Thomas Jordan, the SNB?s deputy chairman, was appointed interim chairman on Mr Hildebrand?s resignation. He said this week he would be ready to accept the chairmanship if it were conferred on him. Mr Jordan is a 48-year-old academic economist who has worked for the SNB since 1997.

The vacant post on the SNB governing board is most likely to go to either Thomas Moser, Thomas Wiedmer or Dewet Moser, the three bank insiders who deputise for the three board members.

The SNB?s 11-strong bank council has come under severe criticism after the publication last Thursday of the SNB?s hitherto undisclosed rules concerning financial transactions by top executives. Critics have derided the four pages of regulations as too loose and poorly formulated.

Hansueli Raggenbass, the council?s chairman, and Jean Studer, his deputy, have both separately confirmed that the council will move fast to tighten up the regulations. But in a Swiss-French television debate on Tuesday night,

Mr Studer said the council?s priority was to appoint a new member of the SNB governing board. The SNB council, and Mr Raggenbass have come under fire for permitting a ?whitewash? of Mr Hildebrand.

? The Financial Times Limited 2012

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First published on: 13-01-2012 at 00:08 IST
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