CS managers lost 360 million francs in jackpots

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According to an article by Bloomberg news agency, AT1 bonds that were cut to zero as part of the CS acquisition are said to have wiped out approximately CHF 360 million of deferred bonus payments for management employees by the end of 2021. refers to knowledgeable people.

The so-called “Contingent Capital Awards” (CCA) affected by the measure will reflect the corresponding AT1 bonds, the report said. CS had discussions with financial market authority Finma about whether these fee components could be removed from the step. According to Bloomberg, about 5,000 people received such CCAs in 2021. A CS spokesperson declined to comment on the report to the AWP news agency.

Complaints are coming

As a result of the hard-hit CS takeover by UBS, the federal government had already ordered the cancellation or reduction of bonuses for nearly a thousand CS management employees earlier in the month. In addition, the CS should check whether bonuses already paid are recoverable and report this to the Finance Department and the Financial Market Authority.

The worthless declaration of CS’s so-called Supplementary Tier 1 bonds (AT1) worth about 16 billion francs also caused waves internationally. Some law firms in several countries have announced that they will take legal action against the Swiss authorities’ decision on behalf of the affected bondholders. (SDA/smt)

Source :Blick