Replies to post #751354 on Fannie Mae-No Politics (FNMA)

[The Man With No Name]

Don't tell that to the class litigation lawyers preparing to recover some of the lost $17.2B bond holders sustained by wiping out their class of bonds in 'Capital Stack' restructuring:

https://www.google.com/amp/s/www.cnbc.com/amp/2023/03/21/credit-suisse-bondholders-prepare-lawsuit-after-at1-bond-writedown-in-ubs-deal.html

"David Benamou, chief investment officer at Axiom Alternative Investments and a holder of Credit Suisse AT1 bonds, told CNBC on Tuesday that he would be joining the lawsuit along with, he imagined, "probably most bondholders."

California-based law firm Quinn Emanuel Urquhart & Sullivan said Monday that it had put together a "multi-jurisdictional team of lawyers from Switzerland, the U.S. and the U.K." following the rescue deal."

And they are gonna lose. I just want to know who the ignorant bondholders are that will be paying the tab.

[kthomp19]

Don't tell that to the class litigation lawyers preparing to recover some of the lost $17.2B bond holders sustained by wiping out their class of bonds in 'Capital Stack' restructuring:

The lawsuit in the first article is about CS's decision and authority to invoke the write down (Section 7), not about a violation of the capital stack.

The AT1 contract specifically states "The Write-down may occur even if existing preference shares, participation certificates and ordinary shares of CSG remain outstanding."

The first article agrees, saying "They also contained a clause enabling them to be written down to zero by Swiss authorities should the bank no longer be viable, regardless of whether stock holders were also wiped out."

Again: the capital stack was respected, not violated.

Your second and third links are only about CS making false and/or misleading statements in its public filings. I don't see any specific mention of AT1 bonds in those two links at all. In fact, the first of the two articles is about a shareholder lawsuit, and the second specifically says its for those who hold stock or options.