Switzerland’s parliament has refused to approve the 109 billion Swiss francs ($120.5 billion) of financial guarantees used to rescue Credit Suisse last month, a move that is primarily symbolic given that the state had already committed the funds.
The lower house retroactively rejected the rescue package in a vote which was used by lawmakers to express anger at not having been allowed a vote on the issue initially.
Switzerland’s upper house authorized the rescue earlier in the day, meaning the two legislative chambers will vote once more on Wednesday.
A rare extraordinary session was convened to discuss the swift rescue of Credit Suisse and the Swiss government’s open-checkbook response to a collapse that many in the country blame on top management.
Credit Suisse was acquired by Zurich-based rival UBS (UBSG.S) for 3 billion Swiss francs and buoyed up with more than 250 billion Swiss francs in guarantees and support, which has been criticized widely.
Earlier in the day, 29 of Switzerland’s 46-member Council of States approved the measure; however, 102 of Switzerland’s 200-member National Council voted against it later in the day.
However, the votes are primarily symbolic because the state has already committed the funds and legislators cannot reverse this decision.