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Switzerland’s Banking Crisis: Credit Suisse’s Collapse and Impaired Safe Haven Status

21st March 2023

The collapse of Credit Suisse Group AG and the Swiss government's actions to secure UBS Group AG's purchase of the bank have raised concerns about Switzerland's long-held reputation as a haven of legal certainty for investors. The government's invocation of emergency legislation to override competition law and shareholder rights, as well as the discovery that $17 billion worth of Additional Tier 1 debt was worthless, has resulted in accusations of a gross wilful breach of fiduciary duties owed to shareholders, investors, and depositors of Credit Suisse. The nation's safe haven status has been impaired, and Credit Suisse and UBS are both at risk of unprecedented class actions for breaches of fiduciary duties, misrepresentation, and misleading conduct tantamount to fraud in damages and opportunity costs claims.
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