Abhishek Sachdev, MC of FCA Authorised Derivative Consultants was interviewed by Jamie Dunkley from the Evening Standard.
The article is about the the threat to the Bank of unwinding legal settlements, based upon new information regarding LIBOR manipulation.
Banks’ legal settlements over rates mis-selling under threat
Published: 01 July 2015
Updated: 10:04, 01 July 2015
Thousands of legal settlements between banks and their customers relating to the mis-selling of interest rate swaps could be torn up as a result of a High Court battle between Lloyds Banking Group and the owner of a Wolverhampton-based property company, Gary Hartland.
Experts are warning that a Libor-fixing case brought by Hartland’s Wingate Associates against Lloyds could set a legal precedent allowing individuals to revisit settlement agreements that have already cost the banks billions of pounds.
Wingate Associates is claiming that a 2011 settlement over the mis-selling of an interest rate swap should be overturned because of the bank’s involvement in fixing Libor.
The outcome of the case could affect thousands of similar settlements.
Lloyds said: “We do not believe the matter has any merit and it will be vigorously contested.”
More than 12,000 settlement agreements on interest rate swaps have been reached under the Financial Conduct Authority redress scheme with a total value of close to £2 billion.