The Banking Times reported on Monday that Credit Suisse AG (CSGN.S) workers are prepared to sue the Swiss banking regulator for over $400 million in bonuses canceled after UBS Group AG (UBSG.S) rescued the troubled institution.
The paper said Credit Suisse’s top management has frequently urged Quinn Emanuel and Pallas, legal firms suing Swiss regulator Finma on behalf of AT1 bond investors, to represent them.
Reuters contacted Credit Suisse, Finma, Quinn Emanuel, and Pallas.
The Swiss regulator’s March takeover made $18 billion of Credit Suisse’s Additional Tier 1 (AT1) debt worthless, startling markets and litigators.
The deal’s reversing bondholders’ debt recovery priority over shareholders led to hundreds of lawsuits.
After this, Switzerland’s Federal Council ordered Credit Suisse to cancel or reduce all top-three management bonuses and determine whether they may be recovered. read on
Swiss banking law allows the public Council to impose bonus-related measures on systemically important banks receiving public financing.
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