It was clear the write-off of Credit Suisse AT1 bonds would lead to a legal tug-of-war. The question of how much of the failed bank's communications with Finma should be disclosed has been occupying the Federal Administrative Court for months.
The plaintiffs against the write-down of the Credit Suisse AT1 bonds before the Federal Administrative Court (FAC) want to know what went on between the bank and financial market regulator Finma in the run-up to the emergency rescue through the UBS takeover. The court has to decide which documents will be disclosed to bond investors.
Credit Suisse is legally resisting giving the plaintiffs access to more documents, according to a «Reuters» report Wednesday, citing court documents and a letter from Credit Suisse dated late May.
Publication of Finma Ruling
AT1 investors scored a victory in May when the court ordered the publication of Finma orders writing down the AT bonds worth about $16 billion.
Communications between Credit Suisse and Finma could shed further light on what the state of the bank was in the run-up to the emergency bailout. The bank fears that would reveal confidential information and trade secrets.
«Accessing those documents is key for bondholders who have borne the brunt of this unprecedented and unacceptable FINMA's order,» said lawyer Dario Item of Lugano-based law firm I&P, which represents a group of AT1 investors. A decision could come in the coming weeks.
Lawsuits by Injured Parties
In March, Finma ordered Credit Suisse to completely write off the high-interest AT1 bonds as part of UBS's emergency takeover of the troubled bank, rendering them worthless. By August, lawsuits had been filed on behalf of around 3,000 aggrieved parties against the Finma decision.
Since the completion of the takeover, UBS is the successor in all legal disputes. According to the report, sources said a statement from UBS can be expected in mid-October.
