<p>Investors in Asia are joining international lawsuits against the Swiss government for its handling of affairs during the takeover of Credt Suisse, the iconic but troubled bank. Authorities in Switzerland forced Credit Suisse to merge with rival UBS to prevent own collapse.</p>

<p>Though the takeover averted a catastrophe in Swiss banking system, it made bonds worth USD 17 billion held by investors worthless.</p>

<p>An anonymous investor quoted by BBC had bought USD 500000 worth of bonds in January. The investor took the decision even after several problems in the bank.</p>

<p>"Whenever I spoke to them, the bank gave me constant reassurances that this was just a blip, so I decided to go for it. It didn't feel like I was gambling," BBC quoted the investor as saying.</p>

<p>The type of bonds bought in this case were reportedly AT1, a riskier type of bond the value of which can be written down to zero. This is something that happened when Credit Suisse was taken over by UBS.</p>

<p>Now, dozens of bondholders in Singapore are joining hands to hold the Swiss government responsible. The main grievance is the manner in which the merger was conducted.</p>

<p>The investors reportedly claim that terms of bonds should have made them first to be compensated when the bank was on the brink of collapse. The bondholders were to be given priority over shareholders. However, shareholders were allowed to exchange their Credit Suisse shares with UBS shares.</p>

<p>This in effect means that shareholders got something but bondholders did not.</p>

<p>The legal firm, which is representing bondholders, has alleged that the Swiss regulator's decision was "an unlawful action" and that it had "devastating consequences on thousands of retail and small investors globally."</p>

<p>Bondholders who talked to BBC expressed frustration after losing their money and&nbsp;questioned Switzerland's banking reputation.</p>

<p>"We're losing sleep over this. It should have been a rock solid investment, but now I think the reputation of Switzerland and Swiss banks has gone down the tube," said an Asian investor quoted anonymously by BBC.</p>

<p>"Who in the world is going to trust Switzerland anymore?"</p>

<p><em>(With inputs from agencies)</em><br />
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Investors in Asia are joining international lawsuits against the Swiss government for its handling of affairs during the takeover of Credt Suisse, the iconic but troubled bank.

Investors in Asia are joining international lawsuits against the Swiss government for its handling of affairs during the takeover of Credt Suisse, the iconic but troubled bank. Authorities in Switzerland forced Credit Suisse to merge with rival UBS to prevent own collapse. Though the takeover averted a catastrophe in Swiss banking system, it made bonds worth USD 17 billion held by investors worthless. An anonymous investor quoted by BBC had bought USD 500000 worth of bonds in January. The investor took the decision even after several problems in the bank. "Whenever I spoke to them, the bank gave me constant reassurances that this was just a blip, so I decided to go for it. It didn't feel like I was gambling," BBC quoted the investor as saying. The type of bonds bought in this case were reportedly AT1, a riskier type of bond the value of which can be written down to zero. This is something that happened when Credit Suisse was taken over by UBS. Now, dozens of bondholders in Singapore are joining hands to hold the Swiss government responsible. The main grievance is the manner in which the merger was conducted. The investors reportedly claim that terms of bonds should have made them first to be compensated when the bank was on the brink of collapse. The bondholders were to be given priority over shareholders. However, shareholders were allowed to exchange their Credit Suisse shares with UBS shares. This in effect means that shareholders got something but bondholders did not. The legal firm, which is representing bondholders, has alleged that the Swiss regulator's decision was "an unlawful action" and that it had "devastating consequences on thousands of retail and small investors globally." Bondholders who talked to BBC expressed frustration after losing their money and questioned Switzerland's banking reputation. "We're losing sleep over this. It should have been a rock solid investment, but now I think the reputation of Switzerland and Swiss banks has gone down the tube," said an Asian investor quoted anonymously by BBC. "Who in the world is going to trust Switzerland anymore?" (With inputs from agencies) You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here. WATCH WION LIVE HERE ×

Credit Suisse: Bondholders in Asia sue Swiss government after wipeout

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<p>European bank stocks tumbled significantly on Wednesday after increased market fears from the Silicon Valley Bank's (SVB) abrupt collapse, with the already troubled Credit Suisse shares plummeting to a new low.&nbsp;</p>

<p>Regulators and banking leaders worldwide have tried to allay concerns about a global financial crisis, but worries persist.&nbsp;</p>

<p>Credit Suisse shares dropped by over 20 per cent, leading to a 6 per cent decline in the European Banking Index.&nbsp;</p>

<p>The plunge in banking shares halted their trading on several European bourses.&nbsp;</p>

<p>Worryingly, the insurance cost, known as the credit default swap (CDS), against default for the flagship Swiss bank hit a new record high.&nbsp;</p>

<p>That underscores growing investor unease and the increased risk of a default, with some experts predicting that Credit Suisse could go the Lehman Brothers way if the issues in the global financial system mushroom into a full-blown crisis.&nbsp;</p>

<h2><strong>Credit Suisse's Saudi backer refuses further assistance</strong>&nbsp; &nbsp;</h2>

<p>Credit Suisse has been struggling for survival for a while, and for now, there seems to be no relief for Switzerland's second-largest lender.&nbsp;</p>

<p>That's because&nbsp;its largest investor, the Saudi National Bank, has ruled out providing further financial assistance to the lender.&nbsp;</p>

<p>Shares of Credit Suisse plunged by as much as 24 per cent on Wednesday, hitting a new record low after the Swiss bank's largest investor, the Saudi National Bank, said it could not provide more financial assistance due to regulatory issues.&nbsp;</p>

<p>The Saudi lender acquired a stake of almost 10 per cent last year after participating in Credit Suisse's capital raising and committing to investing up to $1.5 billion.&nbsp;</p>

<p>However, Saudi National Bank Chairman Ammar Al Khudairy said the bank cannot provide additional funding as it would go above the 10 per cent regulatory threshold.&nbsp;</p>

<p>The drop in Credit Suisse's shares weighed on broader equity markets, causing some concern among investors about the global banking system's resilience.&nbsp;&nbsp;</p>

<p>Ralph Hamers, CEO of Swiss rival UBS, said the lender has benefited from recent market turmoil and seen money inflows, but he cautioned that it's too early to make any long-term projections.&nbsp;</p>

<p><strong>WATCH |&nbsp;India makes more digital transactions than U.S, China, Europe combined&nbsp;</strong></p>

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<h2><strong>Credit Suisse's turmoil&nbsp;&nbsp;</strong></h2>

<p>Credit Suisse has been trying to recover from a series of scandals that have eroded investor and client confidence.&nbsp;</p>

<p>The bank recently published its annual report for 2022, which revealed "material weaknesses" in controls over financial reporting and ongoing customer outflows.&nbsp;&nbsp;</p>

<p>In the fourth quarter of 2021, customer outflows exceeded $120 billion.&nbsp;</p>

<p>To put Credit Suisse's crisis into perspective: the lender has lost almost 75 per cent of its market value over the past year, making any investment in the company less attractive.&nbsp;</p>

<p>Despite the recent turmoil, Credit Suisse CEO Ulrich Koerner told a conference earlier this week that the bank's liquidity coverage ratio averaged 150 per cent in the first quarter of 2023, well above regulatory requirements.&nbsp;&nbsp;</p>

<p>But traders are still skeptical, and Credit Suisse shares fell below the 2-Swiss-franc mark in Zurich for the first time. This is the seventh day in a row that they have gone down.&nbsp;</p>

<p>In general, lenders are also worried that a recession is coming because of aggressive rate hikes, which make it harder for some businesses to pay back or service their loans.&nbsp;</p>

<p>That is weighing on banks and stock valuations of companies worldwide.&nbsp;</p>

<p>The sell-off on Wednesday came after US bank stocks reversed deep losses on Tuesday after regulators rushed to make sure bank deposits were safe.&nbsp;</p>

<p>Before Tuesday's recovery, global financial stocks lost $465 billion in under two trading sessions.&nbsp;</p>

<p>The latest crash is yet another reminder of the uncertain outlook after the collapse of SVB and three other banks sparking fears of a broader US banking crisis and its contagion risks.&nbsp;<br />
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European bank stocks tumbled significantly on Wednesday after increased market fears from the Silicon Valley Bank's (SVB) abrupt collapse, with the already troubled Credit Suisse shares plummeting to a new low.

European bank stocks tumbled significantly on Wednesday after increased market fears from the Silicon Valley Bank's (SVB) abrupt collapse, with the already troubled Credit Suisse shares plummeting to a new low. Regulators and banking leaders worldwide have tried to allay concerns about a global financial crisis, but worries persist. Credit Suisse shares dropped by over 20 per cent, leading to a 6 per cent decline in the European Banking Index. The plunge in banking shares halted their trading on several European bourses. Worryingly, the insurance cost, known as the credit default swap (CDS), against default for the flagship Swiss bank hit a new record high. That underscores growing investor unease and the increased risk of a default, with some experts predicting that Credit Suisse could go the Lehman Brothers way if the issues in the global financial system mushroom into a full-blown crisis. Credit Suisse's Saudi backer refuses further assistance Credit Suisse has been struggling for survival for a while, and for now, there seems to be no relief for Switzerland's second-largest lender. That's because its largest investor, the Saudi National Bank, has ruled out providing further financial assistance to the lender. Shares of Credit Suisse plunged by as much as 24 per cent on Wednesday, hitting a new record low after the Swiss bank's largest investor, the Saudi National Bank, said it could not provide more financial assistance due to regulatory issues. The Saudi lender acquired a stake of almost 10 per cent last year after participating in Credit Suisse's capital raising and committing to investing up to $1.5 billion. However, Saudi National Bank Chairman Ammar Al Khudairy said the bank cannot provide additional funding as it would go above the 10 per cent regulatory threshold. The drop in Credit Suisse's shares weighed on broader equity markets, causing some concern among investors about the global banking system's resilience. Ralph Hamers, CEO of Swiss rival UBS, said the lender has benefited from recent market turmoil and seen money inflows, but he cautioned that it's too early to make any long-term projections. WATCH | India makes more digital transactions than U.S, China, Europe combined × Credit Suisse's turmoil Credit Suisse has been trying to recover from a series of scandals that have eroded investor and client confidence. The bank recently published its annual report for 2022, which revealed "material weaknesses" in controls over financial reporting and ongoing customer outflows. In the fourth quarter of 2021, customer outflows exceeded $120 billion. To put Credit Suisse's crisis into perspective: the lender has lost almost 75 per cent of its market value over the past year, making any investment in the company less attractive. Despite the recent turmoil, Credit Suisse CEO Ulrich Koerner told a conference earlier this week that the bank's liquidity coverage ratio averaged 150 per cent in the first quarter of 2023, well above regulatory requirements. But traders are still skeptical, and Credit Suisse shares fell below the 2-Swiss-franc mark in Zurich for the first time. This is the seventh day in a row that they have gone down. In general, lenders are also worried that a recession is coming because of aggressive rate hikes, which make it harder for some businesses to pay back or service their loans. That is weighing on banks and stock valuations of companies worldwide. The sell-off on Wednesday came after US bank stocks reversed deep losses on Tuesday after regulators rushed to make sure bank deposits were safe. Before Tuesday's recovery, global financial stocks lost $465 billion in under two trading sessions. The latest crash is yet another reminder of the uncertain outlook after the collapse of SVB and three other banks sparking fears of a broader US banking crisis and its contagion risks. WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

Credit Suisse's survival is in focus after shares hit a new record low

<p>Credit Suisse Group reported its fifth-straight quarterly loss on February 9, which totalled as Swiss moneylender's biggest annual loss since the financial crisis of 2008. The lender on Thursday posted a loss of 1.4 billion Swiss francs ($1.5 billion) taking its full-year loss to 7.3 billion Swiss francs ($7.9 billion). In 2008, Credit Suisse made a loss of 8.2 billion Swiss francs ($8.9 billion).</p>

<p>The bank’s shares fell 5 per cent in early trade. The stock has declined 65 per cent over the past 12 months.</p>

<p>Credit Suisse said in a statement that the fourth-quarter performance was impacted by "the challenging economic and market environment, significant deposit and net asset outflows at the beginning of the quarter, and the execution of our strategic actions." The company said that it expects to make another "substantial loss" in 2023.</p>

<p>Customers withdrew 111 billion Swiss francs ($121 billion) in the final three months of 2022 when the bank was hit by social media speculation that it was on the brink of collapse.</p>

<p><strong>ALSO WATCH |&nbsp;W<a href="https://www.wionews.com/videos/wion-business-news-credit-suisse-looks-to-mideast-for-capital-boost-526350">ION Business News: Credit Suisse to slash 9000 jobs, raise $4 billion</a></strong></p>

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<p>Since 2021, Credit Suisse has headed off a major restructuring plan that includes cutting 9,000 full-time jobs. The company, in its bid to align its focus from investment banking to wealth, announced on Thursday the acquisition of M. Klein &amp; Company, an investment banking business.</p>

<p><strong>ALSO READ |&nbsp;<a href="https://www.wionews.com/world/explained-whats-us-debt-ceiling-why-is-it-such-a-big-deal-554338">EXPLAINED: What is US debt ceiling and why is it such a big deal?</a></strong></p>

<p>Credit Suisse CEO Ulrich Körner said the deal "marks another milestone in the carve-out of CS First Boston as a leading independent capital markets and advisory business."</p>

<p>"We have a clear plan to create a new Credit Suisse and intend to continue to deliver on our three-year strategic transformation by reshaping our portfolio, reallocating capital, right-sizing our cost base, and building on our leading franchises," Körner said in the statement.</p>

<p><em>(With inputs from agencies)</em></p>

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Credit Suisse Group reported its fifth-straight quarterly loss on February 9, which totalled as Swiss moneylender's biggest annual loss since the financial crisis of 2008.

Credit Suisse Group reported its fifth-straight quarterly loss on February 9, which totalled as Swiss moneylender's biggest annual loss since the financial crisis of 2008. The lender on Thursday posted a loss of 1.4 billion Swiss francs ($1.5 billion) taking its full-year loss to 7.3 billion Swiss francs ($7.9 billion). In 2008, Credit Suisse made a loss of 8.2 billion Swiss francs ($8.9 billion). The bank’s shares fell 5 per cent in early trade. The stock has declined 65 per cent over the past 12 months. Credit Suisse said in a statement that the fourth-quarter performance was impacted by "the challenging economic and market environment, significant deposit and net asset outflows at the beginning of the quarter, and the execution of our strategic actions." The company said that it expects to make another "substantial loss" in 2023. Customers withdrew 111 billion Swiss francs ($121 billion) in the final three months of 2022 when the bank was hit by social media speculation that it was on the brink of collapse. ALSO WATCH | WION Business News: Credit Suisse to slash 9000 jobs, raise $4 billion × Since 2021, Credit Suisse has headed off a major restructuring plan that includes cutting 9,000 full-time jobs. The company, in its bid to align its focus from investment banking to wealth, announced on Thursday the acquisition of M. Klein & Company, an investment banking business. ALSO READ | EXPLAINED: What is US debt ceiling and why is it such a big deal? Credit Suisse CEO Ulrich Körner said the deal "marks another milestone in the carve-out of CS First Boston as a leading independent capital markets and advisory business." "We have a clear plan to create a new Credit Suisse and intend to continue to deliver on our three-year strategic transformation by reshaping our portfolio, reallocating capital, right-sizing our cost base, and building on our leading franchises," Körner said in the statement. (With inputs from agencies) WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

Credit Suisse posts biggest loss since 2008 amid ongoing 21,000 job cuts