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Credit Suisse UBS deal: The biggest victim of the current banking crisis (Banking Crisis 2023) has been Credit Suisse, one of the oldest banks in Europe. To reduce its effect, a solution was found by the intervention of the Swiss government, but the crisis does not seem to be ending soon. After the proposal related to this was rejected in the Parliament, now the matter seems to be stuck in litigation.
heavy damages
A group of Credit Suisse investors have alleged that they have lost billions of dollars due to government-backed deals. Regarding this, he has filed a case against the financial regulators of Switzerland. These investors are challenging the order of the Swiss Financial Market Supervisor Authority. Investors’ lawyers say the order from the Swiss Financial Market Supervisor Authority has resulted in losses of about 16 billion Swiss francs, or about $17.3 billion, in high-risk Credit Suisse bonds.
The matter was made by the efforts of the government
Let us tell you that after the intervention of the Swiss government, another major bank UBS had agreed to buy the troubled Credit Suisse. The government had prepared a rescue package of 109 billion Swiss francs i.e. $ 120.82 billion for this deal. Under the deal, UBS agreed to buy Bank Credit Suisse for $3.25 billion. Due to this deal, it has helped in limiting the impact of the banking crisis.
There has been opposition in Parliament as well
The lawsuit by Credit Suisse investors is not the first step against the deal. Earlier, the deal was also opposed in the Parliament of Switzerland. The upper house of the Swiss parliament approved the government contribution to the package, but the matter was stuck in the lower house. In the Lower House, 71 votes were cast in favor of the package, while 103 votes were cast to reject it.
lawsuit filed this week
A recent AP report quoted Thomas Verlaine, managing partner of law firm Quinn Emmanuel Urquhart & Sullivan, as saying that the decision of the Swiss Financial Market Supervisor Authority would undermine international trust in the Swiss financial centre. The same law firm has filed the lawsuit on behalf of the investors of Credit Suisse. A lawsuit in this regard has been filed in a Swiss Federal Court on Wednesday.
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