The panel will examine the heavily debated treatment of AT1 (perpetual) bondholders in the Credit Suisse resolution, whose claims were fully written down at the point of non-viability while equity holders retained residual value. This outcome surprised many international stakeholders and triggered sharp reactions from EU regulators, who reaffirmed the standard creditor hierarchy under the Bank Recovery and Resolution Directive (BRRD).

The session will discuss the Swiss approach, legal and contractual basis for the FINMA decision, the status of the current litigation in New York and Switzerland, and implications for future bank resolutions in distressed across jurisdictions as well as structuring options for AT1 instruments.