Barclays has settled a case accusing it of mis-selling a financial product linked to Libor – the interest rate the bank attempted to manipulate.
The bank sold Graiseley, which owns Guardian Care Homes, an interest rate swap linked to the Libor interest rate. Graiseley argued the deal was invalid because the bank’s traders had tried to manipulate the Libor rate.
Barclays agreed to settle and as a result £70m of Graiseley’s debt owed to Barclays will be reorganised.
A Barclays spokesman, said: “In response to discussions with Graiseley, in order to support the ongoing viability of Graiseley’s care home business, the parties have agreed to a commercial restructuring of Graiseley’s debt.”
The bank was facing a trial over the case, so the settlement means that senior executives will not have to appear in court to give evidence.
The settlement, the first of its kind, will make it easier for other firms to make similar claims against banks.
Between January 2005 and June 2009, Barclays derivatives traders made a total of 257 requests to fix Libor and Euribor, the European equivalent rate, according to a report by the Financial Services Authority.
The scandal ultimately led to the resignation of Barclays chief Bob Diamond and fines for the bank totalling £290m imposed by UK and US authorities.
Mis-sold? Abacus can help you…
At Abacus, we offer a unique and dedicated service in the process of Interest Rate Swap (IRS) claims against banks and other financial institutions.
We have brought together a specialist team from the world of business, finance and law, and with this expertise we are able to provide our clients with an unrivalled, comprehensive and straightforward service in a very complex area of litigation.
Working on a ‘no win, no fee’ basis…
If your business has been sold a loan in the last 10 years, you may be able to register a claim.
Many loans were sold with add-on products that may not have been needed or wanted, and often the lenders would make these products an integral and conditional part of the loan.
Call us on 0161 833 0044 for an immediate no obligation consultation
Register your claim with us now online and we will contact you today to assess to your case
Email firstname.lastname@example.org with details of your loan and one of the IRS Solicitors will be in touch with you today
Have I been Mis-Sold an Interest Rate Swap?
When selling Interest Rate Swap products, the bank or financial institution has an obligation to ensure that:
• The product is suitable for the client
• The customer fully understands the product that is being sold
• The customer fully understands the risks Examples of mis-selling:
• The customer did not understand how the product worked
• The customer did not understand the risks involved if the loan was terminated, i.e. the break costs
• The customer did not understand that the bank could terminate the loan and the customer would still be liable for the break costs
• The Interest Rate Swap was ‘over-hedged’, i.e. the amount of the hedge or its length was greater than the underlying loan, leading to greater break costs on termination
Is there a time limit to claim?
6 years from the date the Interest Rate Swap was sold. If you think you have a claim for interest rates swap mis-selling, seek our expert help as soon as possible.