Although the Central Bank of Ireland and Financial Regulator in (the Republic of) Ireland appear reluctant to scrutinize too closely the conduct of banks operating in Ireland in respect of the selling or mis-selling of interest rate hedging products known as “swaps”, the campaign is getting closer. Today, the Belfast Telegraph reports that recently bankrupted Belfast developer Peter Curistan is setting up a local pressure group in Northern Ireland to more effectively deal with banks, which in the UK, are exposed to liabilities estimated at over €2bn for mis-selling swaps. Several Irish banks, including AIB and Bank of Ireland are being investigated by the UK’s Financial Services Authority for mis-selling swaps.
Peter Curistan has had a particularly acrimonious relationship with Anglo, now the Irish Bank Resolution Corporation and there is still outstanding litigation and an appeal in Dublin, all of which will now be scrutinized by the bankruptcy trustee to see if they should be continued. Peter was bankrupted in Belfast just before Christmas.
And on this side of the Border, the Dublin solicitors Downes have been behind two court cases, one involving Cortina-averse developer David Agar which settled last summer and a new case launched last November 2012 which is ongoing and involves two Irish property development partnerships.
The Belfast Telegraph today reports Peter Curistan – developer of the Parnell Centre on Dublin’s Parnell Street and the Odyssey in Belfast – “is now getting behind the Bully-Banks campaign, a UK-wide organisation created in 2011 to co-ordinate complaints by the owners of small and medium sized businesses against banks”
There is a meeting/conference taking place on 1st February 2012 at the Belvoir Golf Club, Belfast (tickets £30). Register at membership@bully-banks.co.uk. See website bully-banks.co.uk.
Lastly, you might be interested in what is claimed to be the first UK swaps mis-selling case to make it all the way through the court system, reported by British solicitors Pearce Bond here.
The first UK case is not really indicative of the case against the banks. It was very weak. A non-starter. There was no evidence of recommendations by the bank and no allegation that the rates the bank offered for other products were “tweaked” to favour the swap. None of the criteria for mis-selling were fulfilled. They had bad legal advice. Some solicitors would run any case to earn a fee.