Switzerland · Banking

Credit Suisse Group AG insolvency: proceedings and outcome

Credit Suisse was not placed into a formal insolvency or resolution proceeding. On 19 March 2023 the Swiss Federal Council adopted emergency measures and the Swiss Financial Market Supervisory Authority (FINMA) approved a takeover by UBS, together with a full write-down of about 16 billion CHF of Credit Suisse AT1 debt. UBS completed the acquisition on 12 June 2023 and merged Credit Suisse Group AG into UBS Group AG.

Acquired in rescue Credit Suisse was acquired by UBS in a government-arranged takeover approved by FINMA, without a formal insolvency proceeding. Shareholders received UBS shares and AT1 bondholders were written down to zero, a measure under legal challenge.^1,2,3

FINMA said the AT1 write-down covered about 16 billion CHF nominal. The Federal Department of Finance describes 100 billion CHF of additional SNB liquidity assistance loans without a federal guarantee and 100 billion CHF of secured SNB liquidity assistance backed by a federal guarantee. Figures as of 19 March 2023.^1,3

Proceedings

Timeline

1. 16 March 2023Credit Suisse said in a press release that it would access up to 50 billion CHF of Swiss National Bank liquidity assistance, according to the Federal Department of Finance.³
2. 19 March 2023The Federal Council adopted emergency measures and FINMA approved the takeover of Credit Suisse by UBS, triggering a complete write-down of all Credit Suisse AT1 debt.^1,3
3. 9 June 2023UBS and the Swiss Confederation signed a loss protection agreement of up to 9 billion CHF, with UBS bearing the first 5 billion CHF.³
4. 12 June 2023UBS completed the acquisition. Credit Suisse Group AG was merged into UBS Group AG, with shareholders receiving 1 UBS share per 22.48 Credit Suisse shares.^2,3
5. 11 August 2023UBS announced the termination of the federal loss protection guarantee without replacement. The Federal Department of Finance said the Confederation earned receipts of around 200 million CHF on the guarantees.³
6. 17 December 2024The parliamentary investigation committee published its report on the authorities' handling of the emergency merger.³
7. 1 October 2025The Federal Administrative Court, in a partial decision, revoked the FINMA decree ordering the AT1 write-down, according to the Federal Department of Finance. The Federal Supreme Court is to decide on the matter.³

Creditor recovery

AT1 instruments with nominal value of about 16 billion CHF were written down in full in March 2023. The Federal Administrative Court revoked the write-down decree in a partial decision on 1 October 2025, subject to the Federal Supreme Court.^1,3

Related actions

1. 17 December 2024Swiss Parliament, Parliamentary Investigation Committee. Published report on the management by the authorities of the Credit Suisse emergency merger.³

Sources

1. Swiss Financial Market Supervisory Authority (FINMA), FINMA approves takeover of Credit Suisse by UBS (19 March 2023)
2. UBS, UBS completes Credit Suisse acquisition (12 June 2023)
3. Swiss Federal Department of Finance, UBS takeover of Credit Suisse (27 October 2026)