According to the NZZ am Sonntag, some Zurich financial experts believe that creating a new business model in Swiss banking should arise whereby a bad bank is set up to deliberately contain US contaminated assets.

Alex Geissbühler,  a partner from Geissbühler Weber & Partner tax attorney, suggests to respond to the US tax dispute by setting up a bad bank in order to enable smoother processes in the merger and acquisition in the Swiss market. He believes that ‘Often mergers would not materialize because potential buyers hesitate to proceed with a deal with contaminated assets’. Moreover, the fine situation with create a troublesome situation for a number of Category 2 banks.

According to Finews the ‘bad bank’ could be set up in the coming weeks. A. Geissbühler said he had talks with various parties. The boss of the new entity could be Flavio Battaini, ex-head of liquidated Bank Frey, reports the Tages Anzeiger.