Credit Suisse Group bondholders, representing $4.5 billion (CHF4 billion) of the $17 billion of wiped-out Additional Tier 1 bonds of the company, have filed a lawsuit against Switzerland’s banking regulator, the Financial Times reported on Friday.
This content was published on
2 minutes
Reuters/ts
Italiano
it
Gli obbligazionisti del Credit Suisse citano in giudizio l’autorità di vigilanza svizzera per l’azzeramento delle obbligazioni
The complaint says the regulator, FINMA, acted unconstitutionally, by failing to behave “proportionately” and “in good faith” when it ordered Credit Suisse to cancel the AT1 debt, the FT report saidExternal link.
This move by the Swiss regulator in mid-March angered bondholders who thought they would be better protected than shareholders in a rescue deal with UBS earlier in the month.
The lawsuit was filed by the law firm Quinn Emanuel in the city of St Gallen in eastern Switzerland on Wednesday, the FT said.
“FINMA’s decision undermines international confidence in the legal certainty and reliability of the Swiss financial centre,” Thomas Werlen, the law firm’s managing partner in Switzerland, said in a statement.
The bondholder group holds a “significant” percentage of the total notional value of the bonds, Quinn Emanuel said earlier this month when it was hired by the bondholders group.
Last month’s government-backed shotgun marriage between Switzerland’s two biggest banks saw Credit Suisse taken over by rival UBS for CHF3 billion. It was propped up with a total of over CHF250 billion in guarantees and support which has since drawn widespread criticism.
FINMA declined to comment on the lawsuit to Reuters. Credit Suisse did not immediately respond to a Reuters request for comment.
More
More
Singapore bondholders prepare to sue Switzerland over Credit Suisse
This content was published on
Potential lawsuit will argue the $17 billion wipeout of bonds violates free trade agreement.
How is your country dealing with the return of stolen artifacts?
Western nations like Switzerland often have to deal with the process of recovering or returning looted artifacts which have been illegally imported. What’s the situation like in your country?
What do you think Switzerland’s Alain Berset can bring to the Council of Europe?
The former interior minister is to become the first Swiss Secretary General of the Council of Europe – which issues should his five-year term focus on?
Sylvain Saudan, ‘skier of the impossible’, dies aged 87
This content was published on
The Swiss father of extreme skiing pioneered descents from the Alps to the Himalayas – and became the sport’s first star.
Hayek family buys additional Swatch shares for nearly CHF11 million
This content was published on
Following the acquisition of registered shares worth over CHF20.6 million on Monday, the Hayek family made another purchase on Tuesday.
Suicide capsule to be used in Switzerland this year, says euthanasia organisation
This content was published on
The organisation “The Last Resort” has confirmed that the suicide capsule Sarco is to be used in Switzerland. This should happen this year, it said.
Ukrainian children flown to Switzerland for cancer treatment
This content was published on
The Swiss air rescue service Rega flew two Ukrainian children with cancer to Switzerland from a hospital in Kyiv hit by Russian missiles.
Swiss Solidarity raises over CHF10 million for victims of extreme weather
This content was published on
The money raised will be used to help those affected by the recent storms and flooding in the cantons of Ticino, Graubünden, and Valais.
Swiss giant Roche given green light for lung cancer drug in Canada
This content was published on
According to a recent study, Roche’s Alecensaro reduced the risk of recurrence or death by 76% compared to chemotherapy alone.
Swiss luxury watch market hit hard by China-led slump
This content was published on
Sales of Swiss-made luxury watches are in sharp retreat as nervous consumers reconsider splashing out on expensive timepieces and demand slumps.
This content was published on
The dramatic takeover of Credit Suisse by its rival UBS under a government-backed deal has Swiss citizens hot under the collar, a survey shows.
You can find an overview of ongoing debates with our journalists here . Please join us!
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.