Credit Suisse’s Collapse: The Controversy Surrounding Repayment of Creditors

2023-08-07 18:22:57

Published on August 07, 2023 at 8:22 p.m.

What if Credit Suisse had repaid some creditors just before its collapse on March 19? Would the bank have managed to restore market confidence and save itself? The establishment’s senior management apparently thought so, since it would have liked to obtain Finma’s authorization, around March 17, to reimburse so-called “AT1” bonds, affirms the Sunday newspaper of this Sunday. But the supervisor of Swiss finance would not have given his approval and continued to organize the takeover of the number 2 Swiss bank by UBS, canceling in passing the value of all these specific obligations.

These convertible bonds (known as “Coco’s”), with an initial value of 16 billion francs, are today the subject of legal proceedings, launched by some 3,000 investors who contest their reset. The article in the German-speaking newspaper, which quotes former Credit Suisse executives, would therefore go in their direction. Finma and UBS did not wish to comment, Credit Suisse had not replied to our message at the time of closing the newspaper.

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