FT News Briefing Credit Suisse bondholders sue
Apr 21, 2023
Investors holding $4.5 billion in Credit Suisse bonds are suing Switzerland's banking regulator over their losses after the bank's failure. Meanwhile, U.S. regional banks are stabilizing post-Silicon Valley Bank's collapse, but declining profits and rising interest rates pose new challenges. Additionally, a controversial U.S. court ruling against the abortion pill raises alarms for pharmaceutical innovation, with experts warning about the potential chilling effect on drug development and investment.
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Credit Suisse Bondholder Lawsuit
- Credit Suisse bondholders are suing the Swiss regulator, FINMA, over the bank's sale to UBS.
- The sale wiped out $17B in bonds while equity holders retained some value, raising questions about proportionality.
Regional Bank Stability and Profitability
- Deposit flight from U.S. regional banks after SVB's collapse was less severe than anticipated.
- However, their profitability is shrinking due to higher interest rates paid to depositors.
Impact of Mifepristone Ruling
- A Texas judge's decision on Mifepristone questions the FDA's authority and impacts pharmaceutical investment.
- This could lead to less innovation at home and more R&D spending abroad.