A group of Credit Suisse investors have sued Swiss financial regulators after a government-engineered takeover of the struggling bank by rival UBS left them with billions in losses.
The investors are contesting an order by the Swiss Financial Market Supervisory Authority, or FINMA, that wiped out about 16 billion Swiss francs in higher-risk Credit Suisse bonds as part of an emergency rescue last month, lawyers said Friday.
The firm filed the lawsuit in Swiss federal court Wednesday on behalf of investors holding more than 4.5 billion Swiss francs in the higher-risk bonds. It’s one of several complaints underway in Switzerland following the bond losses. Following the 2008 financial crisis, European financial regulators use a special type of bond that is designed to provide a capital cushion to banks in times of distress. But those bonds are designed to be wiped out if a bank’s capital falls below a certain level.
The action has triggered “a large large of complaints” with the Federal Administrative Court in Switzerland, spokesman Andreas Notter said.
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