Swiss Regulator Defends Controversial Writedown of Credit Suisse Bonds Amid Takeover Talks.
TL;DR
Switzerland's financial market regulator, FINMA, has defended its decision to impose losses on some of Credit Suisse's bondholders, saying the decision was legally sound. As part of the multi-billion franc rescue of Credit Suisse, the regulator said 16 billion Swiss francs ($17.49 billion) of the lender's Additional Tier 1 debt would be written down to zero, while shareholders received some compensation. The decision prioritised shareholders over AT1 bondholders, causing a sharp fall in prices on Monday. Some Credit Suisse AT1 bondholders are seeking legal advice.
- Swiss regulator defends its decision to write off AT1 bonds Reuters
- What the takeover of Credit Suisse means for UBS Financial Times
- Swiss regulator defends controversial $17 billion writedown of Credit Suisse bonds CNBC
- UBS, Switzerland, and Those Angry AT1 Investors Bloomberg
- Swiss central bank says crisis halted as it hikes interest rates CNN
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