⚖ Oral Arguments, with Context

The United States Court of Appeals for the Second Circuit hears argument in Creditincome Limited versus the Swiss Confederation. The case arises from Switzerland's emergency rescue of Credit Suisse in March 2023, when the government brokered a merger with UBS to prevent the bank's collapse. As part of the deal, Swiss regulators issued an order wiping out Credit Suisse's AT1 bonds, a class of contingent capital securities held by investors like the appellant. Those bondholders sued in U.S. federal court, alleging that Switzerland's actions caused their losses. Switzerland invoked the Foreign Sovereign Immunities Act, or F-S-I-A, which generally shields foreign governments from suit in American courts unless an exception applies. The core legal issue on appeal is whether Switzerland's conduct in arranging and facilitating the merger qualifies as commercial activity under the F-S-I-A, which would strip away sovereign immunity, or whether Switzerland was acting as a market regulator exercising uniquely sovereign powers. The district court dismissed the case, holding that Switzerland's actions were governmental, not commercial. The question today is whether that dismissal should stand. Switzerland's financial regulator, FINMA, issued the order that wrote down the bonds. Switzerland says the suit is based upon that sovereign regulatory act. The bondholders dispute that; they say their claims rest on the loans, guarantees, and deal-making that surrounded it, conduct they call ordinary commerce.

Creditincome Limited v. the Swiss Confederation (No. 25-2733) — U.S. Court of Appeals for the Second Circuit, argued June 25, 2026.