Must be responsible for sinking: Class action filed against former CS bosses Dougan and Thiam

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Investors of defunct Credit Suisse (CS) AT1 bonds filed a class action lawsuit in the US against former CS CEOs Brady Dougan (63) and Tidjane Thiam (60) and other former executives of CS investment bank. The case was filed in a New York court on Tuesday, Bloomberg news agency reported on Wednesday.

Investors argued in the lawsuit that executives engage in excessively risky transactions to obtain high short-term returns and bonuses. They have also resorted to unethical and illegal practices to attract and retain high volume customers. The law firm cites a report commissioned by CS himself in his argument.

Are “New York investment bankers” responsible for the decline?

Although CS began as a conservative Swiss bank, according to the indictment, most of those responsible for its bankruptcy were not Swiss bankers but “pointed New York investment bankers”. Two former CEOs are named in the lawsuit, as well as three former executives of the investment bank. Even Dougan’s successor, Franco-Ivorian Tidjane Thiam, was unable to reverse the influence of the US-based investment bank.

With the urgent takeover of CS by UBS on March 19, Additional Tier 1 bonds (AT1) with a total par value of approximately CHF 16 billion of CS were declared worthless. Numerous investors have filed complaints with the Federal Administrative Court (BVGer) against the relevant decision of the financial market supervisory agency Finma. (SDA/smt)

Source :Blick