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

  • Share via facebook
  • Tweet this
  • Bookmark and Share

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

Market Performance

Mashreq
118.0
0.0 0.0 (%)
Join the Discussion

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

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

Enter the words above: Enter the numbers you hear:

All comments are subject to approval before appearing

Further reading

Features & Analysis
Shuttered banks, ATM queues and $77 daily limits: Greece plunges into crisis

Shuttered banks, ATM queues and $77 daily limits: Greece plunges into crisis

Breakdown in talks between Athens and its creditors plunged the...

Malaysia fund's $4.5bn rescue may weigh on Abu Dhabi's IPIC

Malaysia fund's $4.5bn rescue may weigh on Abu Dhabi's IPIC

International Petroleum Investment Co came to the aid of Malaysia...

Debt market beckons as Saudi bourse opens to foreigners

Debt market beckons as Saudi bourse opens to foreigners

Corporate bond issuance in the kingdom is the most active in...

Most Popular
Most Discussed