Swiss bondholders are pushing for a potential settlement with UBS after a court ruled that the SFr16.5bn ($20.8bn) write-off of Credit Suisse’s additional Tier 1 bonds during its 2023 rescue lacked a legal basis, the Financial Times reported.
Last month, the Swiss Federal Administrative Court ruled that market regulator Finma’s order to wipe out the bonds lacked a sufficient legal basis, “overstepping” its authority. Both UBS and Finma are appealing against the decision to the Supreme Court in a process that could take years to resolve.
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