In this context, it is important that CS’s banking business continues to function smoothly and without interruption. “On Sunday, a solution was found to protect customers, the financial center and the markets. As the bank was granted assistance loans backed by a federal default guarantee on March 19, the regulator instructed the bank to write down the 16 biillion francs ($17.2 billion) worth of those bonds to zero, it said. “The AT1 instruments issued by Credit Suisse provide contractually that they are written off in full in the event of a trigger event (viability event), in particular when extraordinary government support is granted,” the regulator said in a statement. Swiss regulator FINMA on Thursday defended the decision for Credit Suisse AG.’s CSCH:CSGN additional Tier 1 bonds (AT1), or contingent convertible bonds or CoCos, to be written down as part of the investment bank’s merger with UBS AG UBSCH:UBSG. Swiss regulator says full writedown of Credit Suisse AT1 bonds due to ‘viability event’
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