Business
UBS wins arbitration on $595,000 Credit Suisse awards
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UBS Group AG asked a New York court Wednesday to confirm arbitrators' rejection of deferred pay claims by Martin Ego and Jeffrey Jennings. Both were former Credit Suisse managing directors. Switzerland's 2023 rescue merger required writing down contingent capital award certificates and $17 billion in AT1 instruments. Jennings held more than $595,000 in certificates. Ego received awards totaling $360,000.
Prism
What It Means For You
- Former Credit Suisse bankers face mixed arbitration outcomes on merger writedowns.
- A separate case awarded nearly $1 million to executive Matt Mitchell, which UBS contests.
- Switzerland's top court last week upheld bonus losses for rescued bank staff.
What's Happening
- UBS sought court confirmation after arbitrators sided with the bank on CCAs.
- Ego and Jennings argued no viability event triggered the certificate write-down.
- An arbitrator found capital adequacy includes absorbing losses under stress.
CCA awards after merger
- Credit Suisse lost more than $5 billion after Archegos Capital's 2021 collapse.
- CCAs were modeled on AT1 instruments designed to convert when banks are in danger.
- UBS still faces AT1 holder suits after a New York appeals ruling on Swiss government actions.
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