As we frequently try to inform others about this issue, the potential problem of interest rate swap mis-selling is not just confined to small or medium sized businesses.
Vestia, a Dutch Social Housing Association agreed to unwind c£1.6bn ($2.5bn) of interest rate swaps with its Banks. The Banks included Citibank, Deutsche Bank, Barclays, ABN and others.
Vedanta Hedging has been recently acting for some very large institutions and we have found that there is still a large gap in the understanding that client’s had about the hedging, compared to the Banks that were structuring and selling it.
Vestia are reserving their right to legally challenge their Banks on grounds of “fraud, bribery or other wrong doing”.
Vestia had loans of €6.1bn but had interest rate swap contracts for €22bn.
More details can be found here: