UBS Acquisition Of Credit Suisse: Deal Of The Century
Obviously, there is going to be a significant outflow of talents, assets, clients and risk appetite (including stricter capital requirements).
Whether all the other complicated procedures described were actually met or FINMA used some of the discretionary judgment it apparently legally has might be a different issue. I suspect the salesmen selling these things may also have been equally ignorant of exactly what they were offering.
However these "instruments" apparently were never intended to have the conventional seniority of bonds, a nuance the buyers in their attempt to get some real return in a zero interest rate environment may not have understood.
Lots of so-called sophisticated investors are not always as sophisticated as they think they are when delving into and understanding what sometimes they dismiss as just legal boilerplate, an attitude I saw frequently during my long investment banking and consulting career.
The litigation could be interesting, but basing it on the normal bond seniority concept might not fly very far.$UBS Group AG(UBS)$
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Thx for the Info