Credit Suisse AT1 Litigators Hit Back at Reform Discussions (1)

A push by global banking regulators to examine Additional Tier 1 securities in the wake of Credit Suisse’s downfall is facing criticism from an unlikely source: representatives of aggrieved investors.

In recent weeks, authorities from the Basel Committee on Banking Supervision to the Swiss National Bank have raised questions about AT1s and their role in providing a capital cushion for banks under stress.

The trouble is, few in the market want the instruments changed. Even those burned by losses on Credit Suisse say their structure is not the problem and scrutiny is misplaced. That’s after AT1s clocked up their busiest ...