AMSTERDAM Dec 21 Vestia, one of the largest
Dutch housing cooperatives, said on Wednesday it had filed a
large claim against Deutsche Bank, alleging the bank
had improperly sold it interest rate derivatives.
Vestia said in a statement it had filed a claim at the High
Court of Justice in London on Dec. 2 and would specify later how
much it intended to seek in damages.
It alleged Deutsche Bank was responsible for 800 million
euros ($832 million) out of 2.5 billion euros in damages
suffered by the entire Dutch housing cooperative sector as a
result of mis-sold interest rate derivatives.
Deutsche Bank could not immediately be reached for comment
Vestia spokesman Ronald Florisson said previous attempts to
reach an out of court settlement with Deutsche Bank had failed.
Vestia was close to bankruptcy in 2012, facing losses on a
23 billion euro pile of derivatives that were supposed to
protect the cooperative against a rise in interest rates but
were later deemed mostly unnecessary, speculative and out of
line with the organisation's charter.
Vestia survived with help from several Dutch government and
semi-governmental organisations, including the country's other
housing cooperatives, which were forced to contribute to a
Threatened with large losses in a Vestia bankruptcy, most of
the banks that had sold the derivatives agreed in June 2012 to a
deal to unwind them, and offer Vestia new financing.
Vestia's own losses are usually estimated at about 2 billion
Vestia purchased the bulk of its derivatives from ABN Amro
and Deutsche Bank, but also from Credit Suisse, Barclays, BNP
Paribas, JPMorgan, Nomura and Societe General.
In 2015, as it sought a stock market listing, ABN Amro
agreed to pay 55 million euros to settle Vestia's claims.
The cooperative's former finance chief and a derivatives
trader are among seven employees under criminal investigation
over the matter. They deny wrongdoing.
In 2013, Vestia filed a 1.9 billion euro damages claim
against former chief executive Erik Staal. This year, it settled
with Staal and 10 former supervisory board members for 4.8
million euros with no admission of wrongdoing.
Accountants KPMG and Deloitte are still facing unresolved
claims. They deny wrongdoing.
($1 = 0.9607 euros)
(Reporting by Toby Sterling; Editing by Mark Potter)