By Divya Rajagopal

TORONTO (Reuters) -The Credit score Roundtable, a foyer group of a number of the greatest fastened revenue asset managers from america and Canada, has determined to not take authorized motion towards Credit score Suisse AG, an individual acquainted with the matter advised Reuters on Thursday.

Earlier this week, the Swiss regulator ordered 16 billion Swiss francs ($17.5 billion) of Extra Tier-1 (AT1) debt to be worn out beneath its rescue takeover by UBS.

The difficulty got here up for dialogue in a gathering earlier this week when some members needed to sue the banks for the write-off, however the affiliation determined to not take any motion, the individual added. The supply was not approved to discuss the matter publicly.

The supply mentioned it was all the time “black and white” that these bonds could be written all the way down to zero in hostile occasions. “So should you purchased it and did not find out about it, disgrace on you and should you purchased it and knew about it, effectively …, ” the supply added.

The Credit score Roundtable was unavailable for remark. Launched in 2007 for bondholders’ safety, Credit score Roundtable consists of 43 members together with PIMCO, Vanguard, MetLife (NYSE:), Canadian pension fund Omers, and Solar Life Monetary (NYSE:) Inc.

The supply mentioned particular person members are free to pursue authorized motion independently.

The bond holders of Credit score Suisse in Europe and UK have been searching for authorized recommendation over the Swiss banking regulator’s choice to put in writing off AT1 bonds beneath the rescue take over by UBS. Nevertheless on Thursday, the Swiss regulator reaffirmed its place on creditor hierarchy.