Dubai’s Mashreq sues ING over $43m investment loss

Lender claims financial services firm wrongly revised Mashreq on high risk investments

Dubai bank Mashreq is suing Dutch financial services giant ING over a $43m investment loss tied to derivative securities, according to a filing with a US federal court, Bloomberg reported.

In a complaint filed in Manhattan, the emirate’s second largest lender by market value, claimed that it had invested with ING in 2005, but in 2007 the company had wrongly revised these investments to include risky instruments such as centralised debt obligations.

In its claim Mashreq said these revisions were “nothing more than trickery” and ING had packed the Dubai bank’s account with “toxic, illiquid ‘structured securities’ based on pools of loans cast off by investment banks”.

According to court papers, Mashreq is seeking a jury trial and damages, including punitive damages, as well as a return of profits it may have made via the original derivative investments.

When contacted by Bloomberg, a spokesperson for ING said “as a matter of policy, we don’t comment on pending litigation”.

Related:
Companies
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

NOTE: Comments posted on arabianbusiness.com may be printed in the magazine Arabian Business

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

All comments are subject to approval before appearing

Further reading

Features & Analysis
Trading bricks: The growing popularity of real estate investment trusts in the Gulf

Trading bricks: The growing popularity of real estate investment trusts in the Gulf

Investor interest in real estate investment trusts (REITs) has...

First bank merger in 20 years sets Saudi Arabia up for more deals

First bank merger in 20 years sets Saudi Arabia up for more deals

Q&A look at what the planned merger of HSBC and RBS’s Saudi ventures...

A natural move: How Dubai Chamber is strengthening its ties in Latin America

A natural move: How Dubai Chamber is strengthening its ties in Latin America

With vast resources and more than half-a-billion people, the...

Most Discussed
sponsoredTracking