Credit Suisse staff members are reportedly planning to file a lawsuit against the Swiss financial regulator over lost AT1 bonuses. According to reports, the Swiss regulator, FINMA, issued a warning to the bank earlier this week related to its handling of AT1 bonuses. The bank, however, has been accused of taking measures to reduce its costs while failing to recognize its obligations to employees who were promised bonuses related to the AT1 bonds.
According to reports, the employees are considering suing FINMA over the issue and are trying to find legal representation to pursue the case. The employees are reportedly hoping to recoup some of the money they lost due to the actions taken by the bank. They are also reportedly alleging that FINMA’s warnings went largely ignored by Credit Suisse management who continued to pay out bonuses promised in past years.
The lawsuit is expected to be filed in the coming weeks and the outcome of the case remains to be seen. However, it could set a precedent for other financial institutions that have similar issues with bonuses that they owe to staff.