Credit Suisse sued by Abu Dhabi bank

26 November 2010

Abu Dhabi Commercial Bank (ADCB) is to launch legal action against Credit Suisse for allegedly providing misleading information in relation to investment products.

According to ADCB, the bank is one of a number of financial institutions which failed to provide details on conflicts of interest when it structured a product called Farmington in 2007.

Standard & Poor’s (S&P’s) is also alleged to have offered inaccurate ratings relating to assets connected with the products.

Al'aa Eraiqat, chief executive at ADCB, said: “This latest action is brought with the aim of protecting the bank from potential losses.

“Whilst we don't anticipate a material impact on our earnings as a result of the disputed exposure, we believe, for the benefit of all our key stakeholders, it is appropriate to take action against parties who we believe misled ADCB."

The United Arab Emirates bank described the Farmington product as an “emergency restructuring vehicle”, which it invested in to protect it from a past investment.

Previously, ADCB launched a law suit against Morgan Stanley, S&P’s, Moody’s Investor Services to seek damages following the collapse of an investment product.

By Jim Ottewill

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