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id: 855, Created by Stan Vick, Scout
Credit Suisse (CS) AT1 Bonds Holders Case
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S.D. New YorkCourt
- FINMA approved the CS and UBS merger, announcing a complete write-down of the value of all AT1 CHF 16B debt of Credit Suisse.
- This event was preceded by numerous news, which, in the aggregate, nearly wiped out the value of the $CS AT1 bonds.
- Bondholders suspect CS and its Leaders of concealing the bank's true financial state, which consequently led to their losses.
On March 19, 2023, FINMA approved a takeover of Credit Suisse by UBS via a merger and disclosed that:
- The extraordinary Swiss government support for the Merger would trigger a complete write-down of the nominal value of all AT1 debt of Credit Suisse in the amount of around CHF 16 billion.
- FINMA would later defend its decision to completely write down the AT1 Bonds in its AT1 Bond Advisory on the basis that Credit Suisse was granted extraordinary liquidity assistance loans secured by a federal default guarantee on 19 March 2023 and, therefore, the AT1 Bonds’ contractual conditions for being written down were met.
This event was preceded by numerous news, which, in the aggregate, nearly wiped out the value of the $CS AT1 bonds, damaging investors.
- On March 15, 2023, Reuters published an article “Credit Suisse’s biggest backer says can’t put up more cash; share down by a fifth” citing SNB would not buy any more of the Company’s shares on regulatory grounds.
- On March 14, 2023, Credit Suisse reported material weaknesses in the Company’s internal controls and procedures.
- On February 20, 2023, Reuters reported that the FINMA was reviewing Credit Suisse Chairman, Axel P. Lehmann’s previous comments regarding customer outflows.
- On February 9, 2023, Credit Suisse revealed that contrary to Lehmann’s prior statements, large customer outflows had continued through year-end 2022. Specifically, the press release reported customer outflows of CHF 110.5B in the final three months of 2022, which far exceeded market expectations.
Taking all representations and facts into account, Investors have reasons to suspect $CS and its Leaders of misguiding and concealing from AT1 bonds holders the true financial state of the bank, which later led to their losses.
Failure to Disclose,
Shock Event Date
20 March 2023
20 October 2023
Lead Plaintiff Deadline
19 December 2023