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๐Ÿ”” Unheard of: Bondholders wiped out in front of common stockholders with Credit Suisse deal ๐Ÿ””



It seems that Credit Suisse Junior Debt called AT1 is being required by the Swiss financial regulatory scheme to be written off to zero. Although at first glance this might not seem like a big deal, but it was $17 Billion in debt. This is significant, considering common stockholders are receiving somewhere around the equivalent of around $1 USD/share, while these debt holders are receiving $0. Common financial knowledge in academia would say that the hierarchical structure is that bondholders be paid out before stockholders, but given what the authorities have required under the terms and Swiss law, these bond holders are being wiped out entirely. This has large ramifications, as other banks also have this kind of AT1 junior debt, and this risk is now being repriced across the entire financial world. This contagion is not sustained by any stretch. I do not feel bad for any of these bond holders, as most of these bond holders are extremely wealthy, and are probably corrupt at some level to be holding this garbage! But we will see the reverberations in the coming days and weeks. Everything now is happening much faster than in 2008, so I imagine that April and May will be quite spicy when it comes to news! The dead cat bounce is in, and the degradation of the system will happen far faster then what we saw between March and September 2008, as far more people are educated about the underpinnings of the system, and more people are empowered as ever to do something about their own personal financial situation! #StackOn #SilverIsMoney https://finance.yahoo.com/amphtml/news/credit-suisse-writes-down-17-204603194.html @familyman20181 โ˜•โœ๏ธ

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