Swiss Financial Regulator Defends Write Down Of Credit Suisse AT1 Bonds

2023-03-23 02:12:13

(MENAFN- Swissinfo) Urban Angehrn has been the director of FINMA since 2021. © Keystone / Anthony Anex

The Swiss Financial Market Supervisory Authority (FINMA) justified its controversial decision to write down the value of Credit Suisse's AT1 bonds as part of the UBS takeover of Credit Suisse, saying the“contractual conditions” were met.

This content was published on March 23, 2023 March 23, 2023 minutes Keystone-SDA/jdp

日本語 (ja) スイス金融規制当局、at1債の無価値化「問題はない」
Español (es) el regulador financiero suizo defiende la depreciación de los bonos at1 de credit suisse
Português (pt) agência reguladora suíça defende emissão de obrigações do credit suisse

Switzerland has drawn the ire of bondholders after FINMA announced it was writing off the AT1 (Additional Tier 1 capital) bonds, worth around CHF16 billion ($17 billion) as part of the government-orchestrated takeover of ailing Credit Suisse by its rival UBS. On Wednesday, the Financial Times reported that US bondholders are preparing to sueexternal link the Swiss government over losses.

In a statementexternal link issued on Thursday, FINMA said that the write down complied with contractual obligations.“AT1 instruments issued by Credit Suisse contractually provide that they will be completely written down in a 'Viability Event', in particular if extraordinary government support is granted,” wrote FINMA on Thursday.

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