Derivatives: Banks in Germany and in court France
Thanks to Massimo D. Our sympathizer, with pleasure we publish the update on derivatives, to be followed of our seminar in Verona.
February 19, 2011 (LPAC) - Just like in Italy, hundreds of SMEs and Local dministration in Germany have purchased products from banks and now are facing huge losses for contracts not to say the least transparent. And as in Italy, the victims have resorted to the courts. On February 8 in Karlsruhe has opened the process of last resort of a case that could open the door to thousands of appeals. The company's paper products Ille had sued the largest German bank for an interest rate swap is typical of hundreds of similar swaps sold by Deutsche Bank to SMEs and local administrations. The heads of the claim that the bank did not adequately informed them of the risks linked to the swaps, but sold in 2005, on which the Ille is losing more than half a million. In the first two sets of proceedings, Ille had lost.
At the first hearing in Karlsruhe, things have flipped. Deutsche Bank is in obvious conflict of interest , being part of the contract as a consultant and as a seller. The Chief Justice, Wiechers Ulrich, has expressed support to the injured party, declaring that "when a consultant on financial matters, the bank has to protect only the interests of the customer."
When Ille submitted an internal document of the bank proves that the consultants had the mandate to ensure that potential losses should occur exclusively for the client, the bank has made a display of arrogance and criminal boundless energy, resorting to blackmail. "If the court really meant to force banks to disclose the true earnings embedded in a swap," said the lawyer Reiner Hall of the British law firm Freshfields, "that would shake the entire market, p hy would force banks to disclose profits. A ruling like this could even cause a new crisis "that the financial industry would cost" billions of euro. "
At that point, the court suspended the hearing and withdrew in established the next hearing for March 22 . So far, the balance of judgments in the German courts in such cases is in favor of banks, but the last two processes in Stuttgart and Monaco have reversed the trend. If the Karlsruhe Court will sentence in favor of the complainant, it opens the door to many other causes .
In France, where local authorities, housing institutions and even hospitals have become dependent on loans from the "Toxic", is organizing a real "war on the banks." In the department of Seine Saint-Denis on the edge of Paris, the head of the General Council Claude Bartolone found as soon took office in 2008, that 93% of the debt of the department was at rates variable interest. a total of 950 million of debt, 72% is toxic, which means that the administration must pay an extra amount of 28 million per year.
Bartolone said: "I have a 10 million loan agreement with the German-Irish bank Depfa, whose interest is defined by the parity between the euro and Swiss franc. Initially, the rate was 1 .47%, but currently to 24.2%, and generates an additional cost of € 1.5 million, almost the cost of a nursery. "
On February 9, Bartolone has announced that the department will result in three banks: Depfa, Calyon and the Franco-Belgian Dexia that have had to borrow "toxic" and have refused to renegotiate the terms. "Most of them treated us with contempt (...) We tried to be diplomatic but we did not get results. From now on we are at war." Bartolone called for the "pure and simple cancellation of the toxic loans," adding: "repay the capital, and that the money we have paid, but will ask the banks to repay the interest we pay illegal since we signed the contract." Other major cities such as Lille and Saint-Etienne, are in similar situations and Bartolone has formed a working group of the National Assembly.
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