A group of Credit Suisse bondholders filed a lawsuit against the Swiss government, seeking full compensation over the contentious decision to write down the failed bank’s Additional Tier 1 (AT1) debt. As part of Credit Suisse’s emergency sale to UBS last year, which was orchestrated by the Swiss government, Swiss regulator Finma wiped out roughly $17 billion of the bank’s AT1s, writing them down to to zero. The bank’s common shareholders received payouts when the sale was completed. The move angered bondholders and was seen to have upended the usual European hierarchy of restitution in the event of a bank failure ... (full story)