Investors in the defunct AT1 bonds of Credit Suisse (CS) have filed a class action lawsuit in the United States against former CS CEOs Brady Dougan and Tidjane Thiam and other former executives of the CS investment bank. The lawsuit was filed on Tuesday in a court in New York, Bloomberg news agency reported on Wednesday.
Investors argued in the lawsuit that executives entered into excessively risky deals in order to earn high returns and bonuses in the short term. They also used unethical and illegal practices to attract and retain large clients. In its argument, the law firm refers to a report commissioned by CS itself.
Although CS started out as a conservative Swiss bank, most of those responsible for its demise were not Swiss bankers, but “pointed-elbow New York investment bankers,” the indictment said. In addition to the two former top executives, three former directors of the investment bank are also mentioned in the lawsuit. Even Dougan’s successor, the French-Ivorian Tidjane Thiam, could not reverse the influence of the US-focused investment bank.
With the emergency takeover of CS by UBS on March 19, CS’s so-called Additional Tier 1 bonds (AT1) with a total nominal value of approximately CHF 16 billion were declared worthless. Numerous investors have filed a complaint with the Federal Administrative Court (BVGer) against the corresponding ruling of the financial market regulator Finma. (sda/awp)
Soource :Watson
I am Amelia James, a passionate journalist with a deep-rooted interest in current affairs. I have more than five years of experience in the media industry, working both as an author and editor for 24 Instant News. My main focus lies in international news, particularly regional conflicts and political issues around the world.
