UK markets close in 8 hours 22 minutes
  • FTSE 100

    7,277.62
    0.00 (0.00%)
     
  • FTSE 250

    23,161.27
    0.00 (0.00%)
     
  • AIM

    1,233.32
    0.00 (0.00%)
     
  • GBP/EUR

    1.1861
    -0.0009 (-0.08%)
     
  • GBP/USD

    1.3769
    +0.0005 (+0.04%)
     
  • BTC-GBP

    44,167.95
    -1,300.03 (-2.86%)
     
  • CMC Crypto 200

    1,476.29
    -28.86 (-1.92%)
     
  • S&P 500

    4,574.79
    +8.31 (+0.18%)
     
  • DOW

    35,756.88
    +15.73 (+0.04%)
     
  • CRUDE OIL

    83.62
    -1.03 (-1.22%)
     
  • GOLD FUTURES

    1,792.20
    -1.20 (-0.07%)
     
  • NIKKEI 225

    29,098.24
    -7.77 (-0.03%)
     
  • HANG SENG

    25,604.31
    -433.96 (-1.67%)
     
  • DAX

    15,757.06
    +157.83 (+1.01%)
     
  • CAC 40

    6,766.51
    0.00 (0.00%)
     

Deutsche Bank vows vigorous defence in lawsuit by Spanish hotel group

  • Oops!
    Something went wrong.
    Please try again later.
·1-min read
The logo of Deutsche Bank is pictured on a company's office in London
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

FRANKFURT (Reuters) -Deutsche Bank said on Wednesday it would vigorously defend itself against a lawsuit by a Spanish hotel group claiming 500 million euros ($578.3 million) in losses on derivatives products.

The suit is the latest development in an issue that first came to light earlier this year, and is a setback for the bank which has been working to restore its public image.

At issue are allegations that Deutsche Bank may have mis-sold risky investment bank products to customers in Spain and elsewhere, a matter that the bank is investigating internally

The Ibiza-based company, Palladium Hotel Group, said in court documents dated Sept. 30 that Deutsche's bankers sold products knowing that the hotel executives "did not have any (or any significant) experience in dealing with complex financial derivative transactions".

Deutsche Bank said in a statement: "Palladium's claim is without foundation and we will be vigorously defending ourselves against it. Palladium is a sophisticated investor with extensive experience of using derivatives."

The lawsuit states that it concerns hundreds of transactions that occurred between 2014 and 2019, and that the company executive involved had "placed trust and confidence" in the Deutsche banker who marketed the deals.

"They were exceptionally difficult for anyone other than a highly sophisticated and experienced market participant such as DB, and in practice impossible for a corporate client" like Palladium to assess, the suit states.

Deutsche Bank said it did not expect to see further claims the size of Palladium's.

The Financial Times first reported about the suit, which was filed in British court. Palladium declined to comment.

($1 = 0.8647 euros)

(Reporting by Tom Sims; editing by Maria Sheahan and Jason Neely)

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting