Credit Suisse/AT1s: additional tears run for conflicted Swiss officials
Financial Times Opinion
23-05-22 17:21
Credit Suisse is disputing the Swiss authorities’ decision to liquidate its additional tier one securities. About 5,000 executives and some bond holders, who were awarded bonuses based on the performance of the AT1 bonds, have cancelled the payouts and are planning to sue regulator Finma. The securities were liquidated so that UBS could acquire Credit Suisse, in a step that cost Switzerland its reputation for financial reliability and will result in long legal disputes, according to the Financial Times. Contingent capital awards were popular with Credit Suisse executives as they appeared to offer more security.