When the Swiss government and Swiss regulator forced UBS to rescue Credit Suisse, one of the conditions was that AT1 instruments would be written off.
Credit Suisse has withdrawn its application to appeal the Swiss Financial Market Supervisory Authority's order to write down its AT1 capital instruments, the Federal Administrative Court said in a statement late Tuesday.
On March 19, Finma instructed Credit Suisse to write down all Additional Tier 1 capital instruments (AT1 instruments). Credit Suisse argued this should not include so-called contingent capital awards (CCAs), which were not issued by the bank itself but had been granted by other companies to employees as part of their remuneration.
Over 200 Complaints
However, on March 22, 2023, Finma said the ruling also affected CCAs. A month later Credit Suisse turned to the Federal Administrative Court (FAC) filing an application for precautionary measures.
Approximately 230 complaints involving around 2,500 claimants have been filed with the FAC against Finma's decision from March 19, 2023, to write down Credit Suisse AT1 bonds, the statement said. These proceedings are still pending.
