Bankers delighted by JP Morgan's landmark court win

JP Morgan has won a court case against an investor, in a verdict which has potentially important implications for the financial sector as a whole.

The US investment bank had been accused of miss-selling investments by Greek shipping tycoons the Polemis family - a claim which has now been dismissed by London's High Court, the Times reports.

In the Russian debt crisis of 1998, the family had lost around half their $700 million investments portfolio due to their purchase of securities based in the nation - buys which, they alleged, were recommended by JP Morgan despite the bank being asked to take a "low risk" investment approach.

For its part, the investment bank said that the Polemis family had bought up the Russian securities in full knowledge of the risks - and that JP Morgan did not even have an "advisory" relationship with them.

The dismissal of the Polemis claim might prove a landmark verdict - as it should now be much more difficult for irate investors to accuse banks of mis-selling in court.

One anonymous London lawyer, speaking to the newspaper, commented: “Private bankers all over the City have been sweating over the prospect of miss-selling claims, where investors say they did not understand what was going into their portfolios and so the bank should pay when things go sour.

"This ruling sets the bar fairly high; it says you can't trade complicated investments when the sun shines then play dumb when it starts to rain."