The major Swiss bank Credit Suisse, which was rescued by an emergency takeover, has promised bonuses of around one billion francs to top people in 2022, despite billions in losses, and most of them have already been paid out. This was announced on Tuesday from banking circles. In an internal memo, the bank has assured employees that unpaid bonuses and salary increases will be paid as planned. The Bloomberg agency had previously reported on it. The bank confirmed the memo but declined to comment further.
After numerous scandals, criticism of poor risk management and cash outflows in the three-digit billion range, Credit Suisse had its back to the wall at the weekend. The share price had crashed despite liquidity promises. In order to prevent a conflagration and a global financial crisis given the nervousness in the banking industry, the government and regulators pushed for the takeover of UBS. It pays CHF 3 billion (a good EUR 3 billion) for Credit Suisse and is responsible for losses of up to CHF 5 billion. In addition, there is a state loss guarantee of nine billion francs and liquidity commitments of up to 200 billion francs.
threat of class action lawsuits
Credit Suisse speaks of a “merger” with UBS. What is clear, however, is that the larger UBS will take over the 167-year-old struggling Credit Suisse. It is the largest banking deal in Europe since the global financial crisis 15 years ago. Credit Suisse was one of the largest wealth managers in the world. Switzerland applied emergency law, therefore shareholders have no right to comment. The transaction is expected to close within a few weeks, a UBS spokesman said.
Several law firms in the USA and Great Britain are already working on class action lawsuits, as reported by the “Tages-Anzeiger”. Among other things, it is about AT1 bonds, the owners of which are becoming worthless at the behest of the Swiss financial regulator. It is about 16 billion francs that banks, insurers and other investors had invested in such subordinated bonds.
