Credit Suisse lenders file lawsuit against Swiss banking regulator
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According to Financial Times, holders of part of the bonds of the Swiss bank Credit Suisse, which was urgently bought by UBS, sued the Swiss banking regulator (FINMA). About 4.5 billion Swiss francs ($5 billion) in AT1 bonds are reportedly litigating the terms of a FINMA-brokered deal between UBS and Credit Suisse that forfeited the value of all of Credit Suisse’s AT1 bonds—about 16 billion Swiss francs.
The FT reports that the plaintiffs are represented in court by the law firm Quinn Emanuel Urquhart & Sullivan, which filed the lawsuit April 18. The plans of Credit Suisse creditors to sue the regulator began known in March. Plaintiffs contend that, unlike Credit Suisse shareholders who received at least some compensation for their securities, AT1 bondholders received nothing, in their view, this is discrimination. “FINMA’s decision undermines international confidence in Switzerland’s legal obligations and credibility as a financial centre,” believe plaintiffs’ lawyers.
Finma has not yet commented on reports of a lawsuit.
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