Banking Crisis – Credit Suisse $17BN AT1 Bonds Write-Off Means $275BN Co-Co Market Faces Collapse

Banking Crisis – Credit Suisse $17BN AT1 Bonds Write-Off Means $275BN Co-Co Market Faces Collapse

Uploaded by Matthias Chang

Please, please watch patiently this video till the very end as otherwise you can never understand the depth of the global financial crisis. This issue is but one facetof thefiasco!

I have also attached two PDF documents. Read them carefully, as the documents have been referred to by Bank Negara. Then make a comparative study from what you have learn from the video and Bank Negara’s stand on AT1 bonds.

In essence the bloody freaking world is waking up to the ugly fact that AT1 Bonds are very risky and depending on governmental interventions, as was the case of Credit Suisse Bank, global banks and “investors” in AT1 bonds (which include Pension Funds, Hedge Fund and many big boys) are freaking mad, nervous and reluctantly coming to terms with the meaning:  BAIL-IN when Too Big Too Fail Banks collapses and money “invested” in AT1 bonds will be whacked to resolve the indebtedness of the failed bank.  Investors’ money is used to “rescue” the failed banks, after it is declared to be valueless by a government. The failed bank need not pay the principal or the interest due.  Wiped Clean! Disappeared into thin air!   Screwed Big Time!

AT1 Bonds meaning-

A stands for ADDITIONAL”

T1 stands for TIER 1″ (the best, the safest security to support any loans given to illiquid or desperate banks to raise capital,  as “bonds” are simply in Queen’s English, an IOU which pays interest to the bondholders (the so-called investors, who are providing the cash to screwed up bankers)!

US Treasuries are TIER 1 securities, as is Gold. So an illusion is created by the name “ADDITIONAL TIER1” (how freaking stupid, that these IOU have the same status as Gold and the US Treasuries which is merely backed by the Big Bully US government with nuclear weapons, but is the biggest and baddest debtor in the world). Conned into believing that AT1 is the same, when it is another piece of  IOU paper.


  1.   Extract from the Financial Stability Board Key Attributes of Effective Resolution Regimes for Financial Institutions:  click on PDF –Download PDF
  2.    Bank Negara’s Capital  Adequacy Framework – specifically SEE Part C, 13.1 and 12.1: Click on PDF –Download PDF 

You really need time to study and learn. No short cuts.

Watch the entire video below at least three times. Wait for 1 to 2 minutes for video to appear.