Date: 5th October 2016
Author:

Lithuania's DNB bank has been sued by investors based on investment losses stemming from the 2008 global financial crash. According to DELFI of the Lithuania Tribune, Investors argue that DNB bank marketed products to them that were suggested to be low risk and pressured investors to borrow against the equity in their homes or take out loans to buy these investments. The case went before the Supreme Court of Lithuania and was ruled to be "Solomonian", where losses would be equally shared at a 50/50 level between the bank and investors. Some Investors who were not satisfied with the ruling have pushed for the case to go before the Court of Justice of the European Union. The investment products in question were a form of insured stock-linked bonds that offered returns that were dependent on the value of the underlining equity that the bond was linked to. The Executive Manager of the association "Už sąžiningą bankininkystę" ("For Fair Banking"), Kęstutis Kupšys discussed the issue with DELFI:

"Most clients are not satisfied with the decision that the losses must be divided by half. They have mortgaged their land or their homes. It doesn't make much difference whether they have to cover half or all of the sum - they will still lose their homes, they will have to sell in order to return the other half to the bank".

Please read the full article here.

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