The Financial Times reports that the Spanish banking group could be liable for mis-selling €7 billion of retail savings products, which it used to finance its acquisition of part of state-owned Dutch bank ABN Amro.
The value of the so-called ‘valores’ bond is tied to Santander’s share price, which has more than halved since the bonds were first offered in October 2007, according to The Wall Street Journal.
Bond mis-selling
In the landmark ruling, a prison therapist named Jorge Segura claimed that he was led to believe he was buying a risk-free, short-term investment product. Despite Santander’s protestations, the court concluded that Mr Segura had not been properly informed by the bank.
The ruling will be a serious wake up call for Santander, which might have had reason to relax after an earlier case of bond mis-selling was thrown out.
Important Precedent
Fernando Zunzunegui, head of Madrid’s Zunzunegui Lawyers – the firm representing other affected Santander clients – told the FT: ‘The decision this week sets an important precedent in this case.’
The value of the so-called ‘valores’ bond is tied to Santander’s share price, which has more than halved since the bonds were first offered in October 2007, according to The Wall Street Journal.
Bond mis-selling
In the landmark ruling, a prison therapist named Jorge Segura claimed that he was led to believe he was buying a risk-free, short-term investment product. Despite Santander’s protestations, the court concluded that Mr Segura had not been properly informed by the bank.
The ruling will be a serious wake up call for Santander, which might have had reason to relax after an earlier case of bond mis-selling was thrown out.
Important Precedent
Fernando Zunzunegui, head of Madrid’s Zunzunegui Lawyers – the firm representing other affected Santander clients – told the FT: ‘The decision this week sets an important precedent in this case.’
Email your news and story ideas to: [email protected]
