A group of Credit Suisse bondholders have filed a lawsuit against the Swiss government seeking full compensation over the decision to write down $17 billion of the bank's Additional Tier 1 debt. The AT1 debt write-down occurred as part of Credit Suisse's emergency sale to UBS last year, which was orchestrated by Swiss authorities. Swiss regulator Finma wiped out the $17 billion in AT1 bonds, writing them down to zero, while common shareholders received payouts. The bondholders argue this decision violated the usual European hierarchy of restitution for bank failures and unjustly violated their property rights.
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00:00 It's Benzinga and here's what's on the block.
00:02 A group of Credit Suisse bondholders have filed a lawsuit against the Swiss government seeking
00:07 full compensation over the decision to write down $17 billion of the bank's additional tier 1 debt.
00:13 The AT1 debt write-down occurred as part of Credit Suisse's emergency sale to UBS last year,
00:18 which was orchestrated by Swiss authorities. Swiss regulator FINMA wiped out the $17 billion
00:23 in AT1 bonds, writing them down to zero while common shareholders received payouts.
00:28 The bondholders argue this decision violated the usual European hierarchy of restitution
00:33 for bank failures and unjustly violated their property rights.
00:36 For all things money, visit Benzinga.com
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