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Fishy tuna bonds.
Tuna bonds continue to cause trouble for Credit Suisse
A child often wants a dog and is then disappointed with the reality of ownership when they must feed it and pick up after it. This is sort of what UBS is going through, except it never wanted the dog in the first place. Imminent firings will mean fewer mouths to feed, but I’m sure UBS would rather pick up dog sh*t with bare hands than pick up the tab on Credit Suisse’ liabilities. These may blow out to hundreds of millions, thanks to Archegos and tuna bonds. The Swiss Government should have just sent the bank to ‘live on a farm.’
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Tuna bonds continue to cause trouble for Credit Suisse
In 2021, Credit Suisse was fined £350 million due to its involvement in the "tuna bonds" loan scandal related to Mozambique. It also forgave hundreds of millions of dollars’ worth of debt owed by Mozambique.
The scandal originated from ~$2 billion worth of loans that Credit Suisse arranged for Mozambique between 2012 and 2016, aimed at funding a state tuna fishery. Some of the funds went “unaccounted for” (cough, corruption, cough).
Credit Suisse hoped the fine and debt forgiveness would draw a line under the issue but Mozambique has commenced civil proceedings which are due to start in London’s High Court September. Credit Suisse has asked the Court to dismiss the case ($). UBS are presumably wondering what they have got themselves into.
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