Investors in CS Bond Want to Sue Switzerland in US Court.
Published: Friday, Sep 15th 2023, 18:40
Mise à jour le : Vendredi, 13 octobre 2023, 14:12
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A group of international bond investors are planning to sue Switzerland in a US court for expropriation due to the Credit Suisse's AT1 bonds being declared worthless as part of the CS bailout. The lawsuit is being organised by the international law firm Quinn Emanuel and could be filed by the end of the year, although this is not yet certain. The bondholders are seeking compensation for the destruction of their property rights. The Swiss Federal Finance Department declined to comment on the article, and Quinn Emanuel also declined to comment. The Swiss Federal Administrative Court has estimated that around 3000 bondholders have filed complaints against the Financial Market Supervisory Authority's (FINMA) decision to annul the AT1 bonds. FINMA had instructed Credit Suisse in March 2020 to write off and cancel the high-yield AT1 bonds, worth around 16 billion francs, as part of the troubled bank's public takeover by UBS. AT1 bonds were created after the 2008 banking crash and can be converted into equity and written off if the financial institution gets into trouble. FINMA had stated that the public assistance provided justified such action.nnnnnnnnnnnnnnnnnnnnnnnnnnnn
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