The finance ministry has confirmed that two legal actions have been filed against the state-backed rescue of Credit Suisse, which wiped out CHF16 billion ($17.9 billion) of risky bonds.
This content was published on
2 minutes
swissinfo.ch/dos
Español
es
Medios de comunicación: Suiza se enfrenta a problemas tras la quita de Credit Suisse AT1
The SonntagsZeitung newspaper writes that various other investors are also examining how to appeal the controversial decision to wipe out the value of AT1 (Additional Tier One Capital) bonds during the emergency takeover by UBS last month.
Law professor Thomas Werlen, who represents international legal firm Quinn Emanuel in Switzerland, told the paper that complaints may appeal to the terms of international investment protection treaties, which foresee reparations in the case of state expropriation.
Switzerland has signed over 100 such agreements with countries around the world.
Swiss financial regulator FINMA has maintained that it was contractually stipulated that the AT1 bonds would be written off in the case of a “viability” or emergency event – “in particular if extraordinary government support is granted”.
FINMA says that this “viability event” took place on Sunday, March 19, the day of the historic UBS deal.
CHF8 billion risk
But the SonntagsZeitung says questions remain about whether – and when exactly – Credit Suisse was actually insolvent, rather than illiquid, and thus entitled to wipe out the bonds.
The newspaper adds that the result of legal cases – should the Swiss state be found to have wrongly expropriated the bondholders – could be a bill of CHF8 billion, i.e. the market value of the AT1 bonds on March 17.
The write-down of the bonds, while Credit Suisse shareholders received payouts at the stock’s takeover value, was a reversal of normal investor hierarchies and was subsequently questioned by the Bank of England and the European Central Bank.
What factors should be taken into account when inheriting Swiss citizenship abroad?
Should there be a limit to the passing on of Swiss citizenship? Or is the current practice too strict and it should still be possible to register after the age of 25?
Is your place of origin, your Heimatort, important to you?
Every Swiss citizen has a Heimatort, a place of origin, but many have never visited theirs. What’s your relationship with your Heimatort? What does it mean to you?
Swiss CFOs have a pessimistic outlook due to trade wars
This content was published on
In the wake of the trade wars launched by US President Donald Trump, Swiss companies are assessing the future much more pessimistically.
Swiss parcel bomber had links to military and intelligence services
This content was published on
The 61-year-old man who admitted to being Patek Philippe's blackmailer in Geneva had connections in the police and the army.
Switzerland postpones online platform scrutiny as US tensions rise
This content was published on
Switzerland has delayed regulating large online platforms such as Google, Facebook, YouTube and X while trade tensions are rising.
Swiss Rhône river region braces for possible flooding
This content was published on
A pre-alert for possible flooding has been announced for the Rhône river as some regions of Switzerland brace for bad weather.
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.