Federal Supreme Court Puts Pressure in CS AT1 Case
The letter from the Federal Supreme Court to the Federal Administrative Court regarding the lawsuits against the write-down of Credit Suisse’s AT1 bonds is written in a particular tone. The highest court wants to know why there has been no «notable activity» to date.
The Federal Supreme Court has given the Federal Administrative Court a deadline of July 27 to respond to supervisory notices submitted by plaintiffs. In doing so, the court is requesting clarification on two points, as can be seen in the letter published on the website «antigua news.»
It asks why no notable activity has been recorded on the part of the Federal Administrative Court since spring 2024. Additionally, it wants to know why the files from Finma and CS/UBS have not yet been forwarded to the plaintiffs' legal representatives.
«What strategy do you foresee for concluding the proceedings?»
Furthermore, the letter continues: «We also ask you to explain what strategy you foresee for concluding the proceedings regarding the write-down of AT1 capital instruments so that a judgment can be rendered in the foreseeable future.»
The proceedings relate to the March 2023 decision by the Swiss Financial Market Supervisory Authority (Finma) to write down Credit Suisse's AT1 bonds worth $16 billion. Approximately 360 complaints have been filed with the Federal Administrative Court by 3,000 AT1 investors.
Complex and Demanding
According to the «Handelszeitung», there has been no progress in the case for two years. In early June, some plaintiffs filed a complaint with the Federal Supreme Court due to the delay.
A court spokesperson told the newspaper regarding the duration of the proceedings: «Due to the volume of the case, the large number of parties involved, and the complexity of the legal questions, the proceedings are particularly demanding and involve numerous procedural steps».
Summary of Pilot Case
However, according to sources, there may be movement soon. The Federal Administrative Court might combine several similar complaints into a pilot case to reach a decision more quickly.
A similar approach was taken by the Federal Administrative Court in the case concerning the legality of ordered CS bonus reductions and cancellations. In that case, the court found the measures to be unlawful.
