HB STUTTGART. The Stuttgart Higher Regional Court with its ruling on Wednesday sealed the defeat for the German bank. The Water Board Mariatal had lost interest in business over half a million €.
The verdict to the detriment of Germany’s largest bank had already indicated after the hearing in late September. The civil court had then pointed out that the bank made mistakes and offered a highly speculative product has. The bank should have known that municipalities should not speculate with taxpayer money. A comparison failed.
The Court of Appeal changed from a decision of the Landgericht Ulm. The judges in Ulm had ruled in favor of the bank.
The Water Board Mariatal to the Ravens castle, the town and the vineyard and mountain communities Baienfurt involved had lost in so-called swap contracts 507 000 €. This will bet that the long-term interest rates rise more than short-term. The end of September it was said by the court, the business was based on "vague forecasts." The Water Board is for a risk of one million euros received. It was a "phenomenon" that municipalities would always conclude such agreements, which represented a "gamble".
The lawyer of the wastewater association, Peter Gundermann, said on Wednesday that the bank had wrongly advised. He was delighted with the decision.
Several Courts of Appeal had ruled in similar cases of swap agreements already in the financial giants. In the operations, many cities and its subsidiaries have bet that the long-term interest rates rise more than short-term.
The German bank, the product according to their own earlier statements no longer: to obscure is the trend of interest rates in recent years become.