The Federal Administrative Court of Switzerland ruled on Tuesday that w riting off 16.5 billion Swiss francs ($20.53 billion USD) in Credit Suisse bonds was unlawful, calling into question the government’s approach to handling banking crises.

Credit Suisse, a global Swiss bank, collapsed back in March of 2023, triggering a response from FinMA, the Swiss government’s financial supervisory body. As part of their rescue plan, FinMA authorized rival bank UBS to take over Credit Suisse activities, and ordered the write-off of 16.5 billion Swiss francs of Additional Tier 1 (AT1) bonds to sweeten the deal.

The government-engineered rescue deal allowed this transition on all fronts, with the Federal Council of the Swiss government issuing an emergency ordinance in 2023 and then amending

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