On July 16, 2026, the U.S. Court of Appeals for the Second Circuit held that Switzerland’s facilitating of a merger between two banks, Credit Suisse A.G., and UBS, did not fall within the “commercial activity” exception to the Foreign Sovereign Immunities Act (FSIA). (Creditincome Ltd. v. Swiss Confederation, No. 25-2733 (2d Cir. July 16, 2026).)  BackgroundIn this case, bondholders of Credit Suisse sued Switzerland in the U.S. District Court for the Southern District of New York over Switzerland’s actions in 2022 and 2023 to address Credit Suisse’s financial crisis. Instead of receivership or nationalization, Switzerland opted to broker a takeover of Credit Suisse by UBS....