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    Credit Suisse collapse - Federal Court annuls the wiping out of 16 billion worth of Additional Tier 1 (AT1) bonds.
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    Credit Suisse collapse – Federal Court annuls the wiping out of 16 billion worth of Additional Tier 1 (AT1) bonds.


    Credit Suisse collapse – Federal Court annuls the wiping out of 16 billion worth of Additional Tier 1 (AT1) bonds.

    https://www.srf.ch/news/wirtschaft/fall-der-credit-suisse-bundesverwaltungsgericht-hebt-finma-verfuegung-zu-at1-anleihen-auf-1

    Posted by onehandedbackhand

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    4 Comments

    2. onehandedbackhand on

      The shitshow continues…

      The court ruled there was no legal basis for the annulment. The decision can be appealed.

      Apparently the (believed to be worthless) bonds are currently trading at around 30% of their nomimal value (as per cash.ch) which means the market is pricing the ‘damage’ at around 5bn. If the taxpayers end up paying for this, expect heads to roll…

    3. taintedCH on

      It wasn’t the Federal court (TF, BGer) but rather the Federal administrative court (TAF, BVGer).

    4. certuna on

      I think everyone can agree that the AT1 holders got the worst deal of all involved stakeholders, legal question is now whether it was justified putting them on the chopping block to bail out the others. Certainly raised a lot of eyebrows at the time. But it’s always unpredictable how the courts see it, and I doubt us randos on Reddit will know enough to say much with certainty here.