Credit Suisse and UBS Takeover of Credit Suisse - What Happened?

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The dust from the UBS takeover of Credit Suisse is still settling. $17 billion worth of AT-1 bonds was wiped out even though equity holders retained some value. As you can imagine, this did not go over well with a lot of people. Here to explain what exactly happened is our markets editor, Katie Martin.

The IMF’s board has finally backed a $3bn bailout for Sri Lanka to help relieve a ‘catastrophic’ economic and social crisis, shares in First Republic Bank tumbled 47 per cent on Monday despite a $30bn rescue deposit last week, and Credit Suisse bondholders were in uproar after the rescue deal by rival UBS wiped out $17bn of the failed Swiss bank’s bonds.

Mentioned in this podcast:

IMF approves $3bn bailout for Sri Lanka

Wall Street chief executives try to come up with new plan for First Republic

Credit Suisse bondholders in uproar over $17bn debt wipeout

Credit Suisse AT1s: investors go loco after Coco no-no

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The FT News Briefing is produced by Fiona Symon, Sonja Hutson and Marc Filippino. The show’s editor is Jess Smith. Additional help by Peter Barber, Michael Lello, David da Silva and Gavin Kallmann. Topher Forhecz is the FT’s executive producer. The FT’s global head of audio is Cheryl Brumley. The show’s theme song is by Metaphor Music.

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