STANCHART CUSTOMER SUES BANK FOR SELLING HER “TOXIC” OFFSHORE BOND
A STANDARD Chartered Bank customer has sued the bank in the High Court for selling her an underperforming, high-risk offshore bond investment. Nachilala Nkombo is demanding payment of US$320,000, the amount she expected to receive at the bond’s maturity.
She is also seeking damages in the sum of US$180,000 for fraud, misrepresentation and negligence. Reuters recently reported that the Securities and Exchange Commission (SEC) had sanctioned Standard Chartered for mis-selling a Chinese property company’s bonds to one of the bank’s local wealth clients at the height of the Asian country’s real-estate crisis.
The source familiar with the matter told Reuters that the UK-headquartered bank, which is currently looking to sell its wealth and retail banking businesses in Zambia.
News Diggers
Zambian banks have for the most part not been sued by clients only ex workers and unions. Let’s see how this goes…