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Credit Suisse collapse reveals ugly truths about Switzerland for investors

In the race to secure UBS Group AG's purchase, the govt invoked the need for stability and emergency legislation to override two key aspects of open markets: competition law and shareholder rights

Photo: Bloomberg
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Photo: Bloomberg

Bloomberg
For decades, Switzerland has sold itself as a haven of legal certainty for bond and equity investors. The collapse of Credit Suisse Group AG revealed some unpleasant home truths. 
 
In the race to secure UBS Group AG’s purchase of its smaller rival over the weekend, the government invoked the need for stability and emergency legislation to override two key aspects of open markets: competition law and shareholder rights. Then bondholders discovered that $17 billion worth of so-called Additional Tier 1 debt was worthless. 

Aside from the sense of shame brought on by the bank’s collapse, legal observers say these three

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First Published: Mar 21 2023 | 9:57 AM IST

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