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November 28, 2017

Credit Suisse loses Kuwaiti investor lawsuit

By Ronan Mccaughey

Credit Suisse has lost a lawsuit filed by a Kuwaiti family who lost $29m investing with the bank during the 2008 financial crisis.

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Mahmoud Haji Haider Abdullah and his sons, Maytham, Mahdi, and Mansour, had lost $29 million at the end of October 2008, Judge Andrew Baker reportedly said Monday, without ruling on how much money they can recover.

Judge Baker was reported as saying the bank was responsible for “actionable breaches of duty” over the family’s purchase of a $20 million three-year note in May 2008.

In October 2008, Maytham and Mahdi chose not to meet a margin call issued by Credit Suisse, which meant they suffered “a total loss of their net investment” in a series of notes and were left overdrawn at Credit Suisse by $336,275.60.

The bank had argued that the family’s refusal to meet the margin call “was so unreasonable as to amount to a failure to mitigate loss,” and that the losses “resulted from the extreme nature and severity of the 2008 crash,” the judgment says.

But the judge said “it was not unreasonable to prefer to exit their investments and stop their losses as they did.”

It is said the Kuwaiti family, who were clients of Credit Suisse’s London-based private banking business, had a net worth in the order of “at least” $500 million between 2004 and 2008 when they were investing through Credit Suisse.

Credit Suisse declined to comment on the matter when contacted by Private Banker International.

 

 

Free Report
img

How attractive are current investment opportunities in Europe?

Europe has been identified as one of the most favorable regions for investors, seeing high investment activity in the past year. Most of these investments have been through Debt Offering, valued at close to $700 billion. The region has provided attractive investments in a diverse set of companies. Companies who tend to major themes such Digital Media, Cloud, Artificial Intelligence, E-commerce, and Big Data are recording the highest number of deals, with Digital Media recording close to 2,000 deals. However, GlobalData’s whitepaper offers a full view of the market, analyzing less successful or attractive points of investment as well, examining statistics on Equity Offering investments and PE/VC deals. Understand how government agencies for economies around the world use GlobalData Explorer to:  
  • Track the M&A and Capital Raising volumes into their target market
  • Identify the top sectors in the target market attracting the investments
  • For any investment segment, identify the top Investors inside and outside the target economy that are already investing in the Segment
  • Assess and showcase the growth potential for various Industries in the target economy
Don’t miss out on key market insights that can help optimize your next investment – read the report now.
by GlobalData
Enter your details here to receive your free Report.

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