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MAB and 3VB offer first defence in Barclays test case

These chickens are slowly coming home to roost. Just from those people I know personally, I know of £50m in redress being claimed from Barclays, and in all cases they seem to fit the profile of a successful complaint perfectly (I am not a lawyer, this is my personal opinion) If the redress scheme ends up being a sham (from KPMG, heaven forfend) then I suspect a significant class action will emerge, which will have deep enough pockets to obtain suitable redress. Several of the banks may regret their miss selling, but I think Barclays may be in the most invidious situation. They have the Libor issue which boosted break costs, making clients less likely to break the agreement, and in some cases causing covenant breaches, and they have the miss selling itself. These are potentially separate claims, and will allow some clients who would have been excluded to make successful partial claims that would otherwise have failed. They could even be named as defendant in cases where they didn't sell the actual swap where the libor distortion caused problems.

30-Aug-2012

10:44 am