Credit Suisse Workers Gear Up To Sue Swiss Regulator Over $400 Million In Lost Bonuses, Report Says (2024)

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Credit Suisse Workers Gear Up To Sue Swiss Regulator Over $400 Million In Lost Bonuses, Report Says (2024)

FAQs

Credit Suisse Workers Gear Up To Sue Swiss Regulator Over $400 Million In Lost Bonuses, Report Says? ›

Senior Credit Suisse staff are preparing to sue the Swiss Financial Market Supervisory Authority, Finma, over its decision to cancel more than $400 million worth of bonuses following the bank's rescue by UBS, the FT reported, citing several people familiar with the matter.

What will happen to Credit Suisse employees? ›

UBS Group AG is set to slash jobs as part of its ongoing efforts to reduce its workforce following the takeover of Credit Suisse, according to a Bloomberg report citing sources. The job cuts are anticipated to impact over a hundred roles across UBS's global investment bank, the sources said.

Who is responsible for Credit Suisse downfall? ›

Switzerland's patchy financial regulation played a role too. But insiders and investors combing over the wreckage say that Credit Suisse's board, headed by Rohner, was ultimately responsible. It was the bearer of a flawed culture that led the bank into a series of calamities.

Did the Swiss government bail out Credit Suisse? ›

In March 2023, Credit Suisse (CS) was bailed out based on the implementation of emergency law to the exclusion of all shareholder rights of the involved banks, likely violating basic principles of monetary order.

What is the litigation against Credit Suisse? ›

April 24 (Reuters) - A new lawsuit by U.S. hedge fund Appaloosa LP accuses the former Credit Suisse of misleading investors about its health before $17 billion of its bonds were written down to zero in a government-orchestrated rescue by Swiss rival UBS (UBSG.S) , opens new tab.

What happens to Credit Suisse employees after merger? ›

After its recent merger with UBS, these offices may see layoffs, according to a report published in the Financial Express (FE). The development is said to be part of the rationalisation of staff at Credit Suisse, one of the most prominent banks in global banking history.

Will Credit Suisse employees be laid off? ›

Analysts have predicted that up to 35,000 jobs could be lost as the two businesses merge, with 3,000 already being stripped out of its Swiss business. During its third quarter results UBS said that 13,000 employees have left since the end of 2022, and 4,000 in Q3 alone.

Why is Credit Suisse collapsing? ›

Hobbled by a series of scandals and failed restructuring plans under successive management teams, Credit Suisse had experienced massive deposit outflows in October 2022.

How many people will be fired from Credit Suisse? ›

Analysts have predicted job losses of up to 35,000 people, but there has been little information on when these might occur. UBS will look to save $10bn in costs over the next three years, with around half of this coming from restructuring Credit Suisse's investment bank.

Who owns Credit Suisse? ›

On 19 March 2023, fellow Swiss bank group UBS agreed to buy Credit Suisse for more than US$3 billion.

How did Credit Suisse lost money? ›

Just three weeks after Greensill met with failure, Credit Suisse lost $5.5 billion when U.S. family office Archegos Capital Management went into default. The hedge fund's highly leveraged bets on certain technology stocks backfired and the value of its portfolio with Credit Suisse plummeted.

Which bank took over Credit Suisse? ›

On 19 March 2023, Swiss bank UBS Group AG agreed to buy Credit Suisse for CHF 3 billion (US$3.2 billion) in an all-stock deal brokered by the government of Switzerland and the Swiss Financial Market Supervisory Authority.

Who bailed out Swiss bank? ›

The Swiss government and its central bank had to step in help their country's biggest private lender. The state provided UBS with $6 billion worth of emergency liquidity and the central bank helped create a stability fund that will take care of UBS' junk assets.

What is the UBS lawsuit with Credit Suisse? ›

The lawsuit accuses Credit Suisse, Koerner and former Chairman Axel Lehmann of "lying to the market about Credit Suisse's deteriorating liquidity," and seeks unspecified damages under U.S. securities laws and a New Jersey racketeering law. UBS declined to comment.

Is Credit Suisse ethical? ›

In addition to the Archegos scandal, Credit Suisse has also been accused of involvement in the Greensill Capital scandal. Greensill, a financial services company, collapsed in March 2021, leaving many of its investors and clients with significant losses.

What is the whistleblower policy of Credit Suisse? ›

Retaliation against any personnel for reports made in good faith is prohibited. This process is subject to supervision by the Audit Committee of the Board of Directors of Credit Suisse. It receives regular updates on significant reports received as well as on measures taken.

Will UBS keep Credit Suisse employees? ›

UBS Group AG has been forking out hundreds of millions of dollars to keep Credit Suisse staff. Many have left anyway.

Will UBS lay off Credit Suisse employees? ›

April 17 (Reuters) - UBS Group (UBSG. S) , opens new tab is planning another round of job cuts after its takeover of Credit Suisse that is expected to affect over a hundred positions across the group's global investment bank, Bloomberg , opens new tab News reported on Wednesday.

How many people have left credit in Suisse? ›

The last time that Credit Suisse broke out employees in its global markets business was 2019, when it had 12,610 people. Since then, 12,210 of them seem to have fallen by the wayside.

What will happen to Credit Suisse pension? ›

Nothing will change for pension recipients of the Pension Fund of Credit Suisse. They remain insured with the Pension Fund of Credit Suisse and their current pensions are protected by law.

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