Bankruptcies rise as coronavirus bail-outs phase out

2 comments
  1. I’m certain a lot of money was paid out to companies who basically already were bankrupt *before* Covid.

    It was quite bold (and imho obviously unwise) that the Federal Council back then announced, that the funds will be paid out quickly and without control and that the government (= taxpayer) will be guarantor for the banks. So the banks also hadn’t much incentive to do much controls because check the applicants is a cost factor… why doing it when the taxpayer covers your losses anyway?

    So some of the applicants simply made up fake-revenue-numbers and therefore got big payments to blow.

    Some of those cases are already in the courts, but I’m asking myself how systematical the follow-up controls were after the initial rush was over.

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