Holders of Credit Suisse AT1 bonds valued at $1.7bn have sued Swiss regulator FINMA after their investments were wiped out as part of the takeover of the bank by rival UBS in March.
The suit was filed in a Swiss court on 18 April by law firm Pallas Partners on behalf of 90 institutional investors and asset managers with $1.35bn in AT1 bonds, as well as 700 retail and family office clients accounting for around $300m. According to a Bloomberg report, the firm said FINMA had no right to order the write-off and is seeking compensation for its clients over what Pallas founder and managing partner Natasha Harrison described as an "abuse of process". Credit Suisse AT1 bond investors sue Swiss regulator "The resolution procedure should not be used by Switzerland to...
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