The hotel company Palladium Hotel Group, owned by the Matutes family, has sued Deutsche Bank for an alleged fraudulent sale of high-risk financial derivatives. According to Palladium sources confirmed to Diario de Ibiza, the lawsuit was filed on September 27th in the High Court of London and seeks a total of 500 million euros in damages. The business group has not released the exact amount of losses incurred by these financial assets.
The Matutes family is not the only one affected by the sale of financial products involving a ‘forex operation’, i.e. extremely high risk toxic products. According to the Financial Times, this alleged mis-selling will affect more than 50 companies in Spain and has already led to the dismissal by Deutsche Bank of the two executives who had hatched this plan. One of those affected is the winemaking company García Carrión, which has reached an agreement with the financial institution to receive 10 million euros in compensation.
‘Incomprehensible’ product
The high-risk financial product that Palladium acquired was contracted in London because it is a market with more lax regulation, since in other financial markets, such as Madrid or Frankfurt, these practices are prohibited. These exchanges would be, using typical terminology from the world of finance, a “very sophisticated product”. And in reality, and translated into common and regulatory language, they are a product that is absolutely incomprehensible, obscure and unintelligible.
For the full article, please visit Diario de Ibiza website here.