Swiss financial regulator gets a new leader as UBS-Credit Suisse merger sparks calls for reform

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Switzerland’s financial markets authority is getting a new chief executive as the country looks at ways to strengthen banking regulations following the crisis at Credit Suisse

GENEVA — Switzerland's financial markets authority is getting a new chief executive as the rich Alpine country looks at ways to strengthen regulations after UBS hurriedly took over ailing rival Credit Suisse last year partly to prevent a global banking meltdown.

The Swiss government on Wednesday selected Stefan Walter, a 59-year-old German national who was director-general of the European Central Bank for the last decade, to head the Swiss financial authority known as FINMA.

The agency played a key role, along with government officials and bank executives, in striking the megamerger worth 3 billion Swiss francs ($3.48 billion) after Credit Suisse customers rapidly pulled out their money following years of scandals. Swiss authorities feared the collapse of such a major lending institution could further roil global financial markets following the failure of two U.S. banks last year.

The troubles at Credit Suisse threatened to unhinge Switzerland's position as a leading financial market, and the takeover left the country with only one internationally important bank: UBS.

A FINMA report issued last month laid out lessons from the brush with banking catastrophe, calling for a stronger regulatory toolbox that would pinpoint responsibilities with banks, grant the financial agency the power to impose fines, and impose tougher rules on corporate governance, among other things.

A parliamentary panel created after the government-orchestrated merger has been looking into the origins of the deal. Plus, Switzerland's executive branch, known as the Federal