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&nbsp;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) 
 
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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

The Swiss government's coronavirus aid package should be used to make the country's economy more sustainable and help tackle climate change, environmentalists said on Monday (May 4).

Swiss environmentalists demand green reconstruction after coronavirus crisis

As Switzerland continues to shed its image as a safe haven for alleged black money, the Alpine nation has agreed to share with Indian authorities the details about two companies and three individuals who are facing multiple probes back in India.

One of the two Indian companies used to be a publicly-listed entity and has already faced the wrath of capital markets regulator Sebi for multiple violations, while the other firm is said to have political links in Tamil Nadu.

As per separate gazette notifications of the Swiss government, the country's federal tax department has agreed to provide 'administrative assistance' to India on requests made about Geodesic Ltd and Aadhi Enterprises Private Ltd.

Similar requests have also been accepted for three individuals associated with Geodesic Ltd -- Pankajkumar Onkar Srivastava, Prashant Sharad Mulekar and Kiran Kulkarni.

While the Swiss government did not disclose specific details related to the information and assistance sought by the Indian authorities regarding the two companies and the three individuals, such an 'administrative assistance' follows submission of proof about financial and tax-related wrongdoings and typically involves sharing of information relating to bank account details and other financial data.

The concerned companies and the individuals can file an appeal against the decision of Switzerland's Federal Tax Administration (FTA) to provide administrative assistance to India.

Repeated attempts to contact the two companies and the three individuals for their comments failed to yield any result. In the past, they have denied any wrongdoing.

The 1982-incorporated Geodesic, once known as a fast-growing company with cutting-edge technology solutions, does not have a functional website anymore and is also no longer a listed entity as trading in its shares has been suspended by the stock exchanges for "procedural reasons".

The company and its directors have faced regulatory action by Sebi as well as other authorities like the Enforcement Directorate and the Economic Offence Wing of the Mumbai Police.

As per latest available details about the company on the stock exchanges, Pankajkumar was listed as Geodesic's chairman, Kiran Kulkarni as managing director and Prashant Mulekar as executive director.

In case of Aadhi Enterprises Pvt Ltd, which was incorporated in Chennai in November 2014, the company is said to have seen a rapid growth in real estate and other businesses, but soon landed in trouble due to alleged links to tainted politicians and for allegedly indulging in money laundering.

According to reports, the Income Tax Department has conducted multiple raids on properties of the company's promoters.

While Switzerland has always denied being a safe haven for black money, it has traditionally been known for its strong banking secrecy laws that had to be eased following a strong global crackdown on illicit funds being stashed in such jurisdictions.

The Alpine nation has been sharing details for many years with several countries including India after submission of evidence about financial and tax-related wrongdoings of the clients of Swiss banks.

Besides, a new framework of automatic information exchange has been now put in place and the details can be accessed under the new system from next year.&nbsp;

As Switzerland continues to shed its image as a safe haven for alleged black money, the Alpine nation has agreed to share with Indian authorities the details about two companies and three individuals who are facing multiple probes back in India.

As Switzerland continues to shed its image as a safe haven for alleged black money, the Alpine nation has agreed to share with Indian authorities the details about two companies and three individuals who are facing multiple probes back in India. One of the two Indian companies used to be a publicly-listed entity and has already faced the wrath of capital markets regulator Sebi for multiple violations, while the other firm is said to have political links in Tamil Nadu. As per separate gazette notifications of the Swiss government, the country's federal tax department has agreed to provide 'administrative assistance' to India on requests made about Geodesic Ltd and Aadhi Enterprises Private Ltd. Similar requests have also been accepted for three individuals associated with Geodesic Ltd -- Pankajkumar Onkar Srivastava, Prashant Sharad Mulekar and Kiran Kulkarni. While the Swiss government did not disclose specific details related to the information and assistance sought by the Indian authorities regarding the two companies and the three individuals, such an 'administrative assistance' follows submission of proof about financial and tax-related wrongdoings and typically involves sharing of information relating to bank account details and other financial data. The concerned companies and the individuals can file an appeal against the decision of Switzerland's Federal Tax Administration (FTA) to provide administrative assistance to India. Repeated attempts to contact the two companies and the three individuals for their comments failed to yield any result. In the past, they have denied any wrongdoing. The 1982-incorporated Geodesic, once known as a fast-growing company with cutting-edge technology solutions, does not have a functional website anymore and is also no longer a listed entity as trading in its shares has been suspended by the stock exchanges for "procedural reasons". The company and its directors have faced regulatory action by Sebi as well as other authorities like the Enforcement Directorate and the Economic Offence Wing of the Mumbai Police. As per latest available details about the company on the stock exchanges, Pankajkumar was listed as Geodesic's chairman, Kiran Kulkarni as managing director and Prashant Mulekar as executive director. In case of Aadhi Enterprises Pvt Ltd, which was incorporated in Chennai in November 2014, the company is said to have seen a rapid growth in real estate and other businesses, but soon landed in trouble due to alleged links to tainted politicians and for allegedly indulging in money laundering. According to reports, the Income Tax Department has conducted multiple raids on properties of the company's promoters. While Switzerland has always denied being a safe haven for black money, it has traditionally been known for its strong banking secrecy laws that had to be eased following a strong global crackdown on illicit funds being stashed in such jurisdictions. The Alpine nation has been sharing details for many years with several countries including India after submission of evidence about financial and tax-related wrongdoings of the clients of Swiss banks. Besides, a new framework of automatic information exchange has been now put in place and the details can be accessed under the new system from next year.

Black money: Swiss government agrees to share details of 2 Indian firms

The Swiss government asked parliament on Wednesday to approve spending of up to 994 million Swiss francs ($1.00 billion) on a bid to host the 2026 Winter Olympics and Paralympics.

The Swiss city of Sion is one of seven candidate sites.&nbsp

The others are Canada`s Calgary, Austria`s Graz, Stockholm, Turkey`s Erzurum, Japan`s Sapporo and an Italian bid involving Cortina d`Ampezzo, Milan and Turin, the International Olympic Committee (IOC) said last month.

"Not only in sport, but also in the economy and society, the government expects numerous positive effects from the candidature `Sion 2026`," it said after a cabinet meeting in Bern.

Sion`s candidacy will remain on ice, however, until residents of the canton of Wallis, where the city is situated, vote on whether to approve the bid in a referendum scheduled for next month.&nbsp

The IOC will invite candidates to bid formally at a session in October, and a host city will be selected in September 2019.

The IOC has simplified the preparation process for Games organisers, reducing costs, increasing the Committee`s contribution and allowing host cities more flexibility in planning for the Olympics and the post-Games use of facilities.

The Swiss city of Sion is one of seven candidate sites.

The Swiss government asked parliament on Wednesday to approve spending of up to 994 million Swiss francs ($1.00 billion) on a bid to host the 2026 Winter Olympics and Paralympics. The Swiss city of Sion is one of seven candidate sites. The others are Canada`s Calgary, Austria`s Graz, Stockholm, Turkey`s Erzurum, Japan`s Sapporo and an Italian bid involving Cortina d`Ampezzo, Milan and Turin, the International Olympic Committee (IOC) said last month. "Not only in sport, but also in the economy and society, the government expects numerous positive effects from the candidature `Sion 2026`," it said after a cabinet meeting in Bern. Sion`s candidacy will remain on ice, however, until residents of the canton of Wallis, where the city is situated, vote on whether to approve the bid in a referendum scheduled for next month. The IOC will invite candidates to bid formally at a session in October, and a host city will be selected in September 2019. The IOC has simplified the preparation process for Games organisers, reducing costs, increasing the Committee`s contribution and allowing host cities more flexibility in planning for the Olympics and the post-Games use of facilities.

Swiss cabinet backs $1 billion support for Winter Olympics bid

The Swiss government has opposed the &#39;nation-wide burqa ban&#39; initiative that was proposed by a committee last September.&nbsp;

The committee, run by a member of the populist right-wing Swiss People&#39;s Party, had previously floated the idea for the creation of a &#39;nation-wide burqa ban&#39; which the Swiss government opposed Wednesday.

Government officials here noted that &quot;it was up to the regions to determine if such a ban was appropriate,&quot; noted AFP.

People in Switzerland will be required to participate in polls determining the final word on the ban. No official date for polling is decided as yet.&nbsp;

Meanwhile, the Swiss government, or the Federal Council, expressed strong views against &quot;women coercion&quot;&nbsp;stating that no female should be &quot;forced&quot; to cover her face.&nbsp;

The government also proposed that no contact with Swiss authorities should be done with &quot;an uncovered face&quot; in order to make the identity of a person knowledgeable.&nbsp;

The burqa ban initiative garnered more than 100,000 signatures and became a topic open for popular vote.&nbsp;

(With inputs from AFP) 
&nbsp;

The Swiss government stated that no female should be 'forced' to cover her face

The Swiss government has opposed the 'nation-wide burqa ban' initiative that was proposed by a committee last September. The committee, run by a member of the populist right-wing Swiss People's Party, had previously floated the idea for the creation of a 'nation-wide burqa ban' which the Swiss government opposed Wednesday. Government officials here noted that "it was up to the regions to determine if such a ban was appropriate," noted AFP. People in Switzerland will be required to participate in polls determining the final word on the ban. No official date for polling is decided as yet. Meanwhile, the Swiss government, or the Federal Council, expressed strong views against "women coercion" stating that no female should be "forced" to cover her face. The government also proposed that no contact with Swiss authorities should be done with "an uncovered face" in order to make the identity of a person knowledgeable. The burqa ban initiative garnered more than 100,000 signatures and became a topic open for popular vote. (With inputs from AFP)