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After it became known that Credit Suisse had been forcibly taken over by UBS, the Swiss Financial Market Authority (Finma) declared all AT1 bonds to be worthless. 16 billion francs gone. Including a CHF 360 million bonus for CS managers.
It doesn’t suit this team. Several executives now want to take legal action and file a lawsuit against Finma. As the Financial Times wrote, several people have already contacted law firms Quinn Emanuel and Pallas.
“Credit Suisse executives from around the world contacted us to see how we can help them,” a source told the British newspaper. The law firm is already dealing with lawsuits by investors who lost money as a result of the write-off of AT1 bonds. This includes Nick Vogel* (67). He lost 200,000 francs, as Blick had previously reported. Migros is also suing Finma. The loss in Migros Pension Fund is 100 million francs.
Finma must be prepared for lawsuits
It is now being investigated whether the CS team’s complaint will be linked to the current case or whether it will be filed separately. “There is a lot of overlap between the two positions, but they are not exactly the same,” the report continues.
AT1 bonds, also known as coconut bonds, were created after the 2008 financial crisis. They are particularly risky: Coco-Bonds can be converted into stock in the event of a triggering event. Then the investment is gone. In return, investors receive high interest rates. (kae)
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Source :Blick
I’m Tim David and I work as an author for 24 Instant News, covering the Market section. With a Bachelor’s Degree in Journalism, my mission is to provide accurate, timely and insightful news coverage that helps our readers stay informed about the latest trends in the market. My writing style is focused on making complex economic topics easy to understand for everyone.
