The Swiss banking regulator was sued by Credit Suisse (CSGN.S) investors who held more than 4.5 billion Swiss francs ($5 billion) of Additional Tier 1 (AT1) bonds.
AT1 bonds worth 16 billion Swiss francs were wiped out last month amid UBS’s state-backed bailout of Credit Suisse, angering bondholders who thought they would be better protected than shareholders.
The bondholders’ law firm said Friday that Quinn Emanuel Urquhart & Sullivan’s April 18 complaint challenges FINMA’s write-down decision.
“FINMA’s decision undermines international confidence in the legal certainty and reliability of the Swiss financial center,” Switzerland managing partner Thomas Werlen stated.
None from FINMA. Reuters received no comment from Credit Suisse.
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