Published by Global Banking & Finance Review®
Posted on October 15, 2025
2 min readLast updated: January 21, 2026
Add as preferred source on GoogleFINMA will appeal a Swiss court ruling that reversed the write-off of $20.53 billion in Credit Suisse bonds, affecting bondholders' recovery hopes.
ZURICH (Reuters) -Swiss market regulator FINMA said on Wednesday it would appeal a ruling by a Swiss court that revoked a decree by the financial watchdog ordering the write-off of Credit Suisse debt during the bank's collapse in 2023.
The Federal Administrative Court said on Tuesday that the writing off of 16.5 billion Swiss francs ($20.53 billion) in Credit Suisse Additional Tier 1 (AT1) bonds was unlawful, boosting bondholders' hopes of recouping losses and raising fresh questions about how authorities handled the bank's demise.
After unravelling, Credit Suisse was acquired by its old rival UBS in an emergency operation engineered by Swiss authorities.
FINMA's announcement that it would challenge the administrative court's ruling at Switzerland's Supreme Court came as expected by analysts.
"The write-down was part of an overall package to stabilise Credit Suisse via a merger with UBS, for which extraordinary state support measures were necessary," FINMA said.
Analysts say that even if appeals against the court ruling fail, investors are not guaranteed to recover the entire sum because the bonds had lost value before Credit Suisse's collapse.
The 2023 write-off stunned markets by prioritizing shareholder compensation over bondholder claims, upending the normal capital structure hierarchy.
(Reporting by Ludwig Burger and Dave GrahamEditing by Madeline Chambers)
A bond write-off occurs when a bond issuer cancels the debt obligation, often due to insolvency or restructuring, resulting in losses for bondholders.
Additional Tier 1 (AT1) bonds are a type of hybrid security that banks issue to meet regulatory capital requirements, often with higher risk and yield.
FINMA, the Swiss Financial Market Supervisory Authority, regulates financial markets in Switzerland, ensuring stability and compliance with laws.
Market reaction refers to how investors respond to news or events, often reflected in stock or bond price movements.
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