Credit Suisse bondholders may take legal action over £14bn wipe out in UBS takeover

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Credit Suisse bondholders may take legal action over £14bn wipe out in UBS takeover
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Lawyers in Switzerland, the UK and US are said to be talking to bondholders who were not expecting to be completely wiped out by the takeover while shareholders are set to secure some money.

A Swiss regulator's decision to prioritise shareholder value over certain bondholders in the forced takeover of Credit Suisse could result in legal action, a law firm has warned.

There is anger as those with AT1 bonds, who would expect to see losses, will get nothing while shareholders, who usually rank below bondholders in terms of who gets paid when a bank or company collapses, will receive £2.7bn.

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