FINMA: Provides information about the basis for writing down AT1 capital instruments
- FINMA is Switzerland’s independent financial markets regulator. Its mandate is to supervise banks, insurance companies
- Explains the basis for the complete write-down of the nominal value of AT1 capital instruments issued by Credit Suisse
- It relies on the issuance prospectuses for the bonds and the Federal Council’s Emergency Ordinance
- It has instructed Credit Suisse to completely write down its AT1 instruments and to inform the bondholders concerned without delay
- The AT1 instruments issued by Credit Suisse contractually provide that they will be completely written down in a “Viability Event”
- As Credit Suisse was granted extraordinary liquidity assistance loans secured by a federal default guarantee
