Swiss reject ban on risky banks

THE Swiss parliament narrowly rejected a bid yesterday to ban risky investment banking at its big lenders, put forward by in response to UBS’s statement it had lost $2.3bn (£1.47bn) on unauthorised trades.

Social Democrat Susanne Leutenegger Oberholzer yesterday asked parliament to discuss a ban on investment banking as part of a debate on tough capital laws aimed at preventing a repeat of the Swiss government bailout of UBS in the financial crisis. But parliament narrowly rejected her bid to reopen the debate, with 55 votes against and 42 in favour.