Switzerland sued by Credit Suisse bondholders

Following the takeover of Credit Suisse by UBS, Credit Suisse AT1 bondholders are taking action against Switzerland. They have filed a class action lawsuit against the Swiss Confederation in a district court in New York, they announced on Thursday. Check out our selection of newsletters. Subscribe here. The plaintiffs are challenging the order issued by the Swiss Financial Market Supervisory Authority (FINMA) on March 19, 2023, in connection with the emergency rescue of Credit Suisse by UBS, in which FINMA ordered Credit Suisse's AT1 bonds to be written down to zero. "By issuing this order, Switzerland unlawfully interfered with the property rights of the plaintiffs," according to the complaint by the group of plaintiffs. The Swiss government brokered the sale of Credit Suisse, which had run into difficulties, and selected UBS as the only remaining major Swiss bank. The plaintiffs argued that Switzerland had thus distanced itself from its role as a financial market regulator and ...