Banking & Finance Disputes Journal - May 2014
Published 31 May 2014
FCA welcomes Court of Appeal decision in relation to legal aid ruling in R v Crawley & Others
On 21 May, the Court of Appeal overturned a Crown Court decision to stay the proceedings in a complex fraud trial, because the five defendants could not get barristers to represent them due to government cuts to legal aid.
Banking Standards Review Council: White Knight or White Elephant?
In February 2014, Sir Richard Lambert, the former Director General of the CBI, published a Consultation Paper in which he outlined his views on how standards of competency and conduct could be raised in the banking sector by the creation of a new professional body. Having canvassed opinion in the industry, on 19 May 2014, he published his recommendations in the form of the Banking Standards Review ("BSR").
Facility Agreements in a pickle?
Court rules on the construction of facility agreements in case arising from the debt restructuring of the Gherkin.
In the recent case of Landesbank & others v Bayerische Landesbank & another the court ruled on the construction of a payment waterfall clause in a facility agreement which governed the distribution of monies in circumstances where there was a shortfall between the amount paid or recovered by the borrowers and the amounts due to be repaid to the lenders.
New Banking Sector Anti-Bribery and Corruption Guidance Published
The British Bankers’ Association recently published its updated Anti-Bribery and Corruption Guidance (the "Guidance”), which sets out the key issues for the banking sector to consider when it comes to the legal and regulatory requirements for preventing bribery and corruption.
Mis-selling claim against Barclays allowed to proceed: Kays Hotels Limited v Barclays Bank PLC (2014)
This claim concerns a complex investment product being sold to an unsophisticated investor.
An update: Graiseley Properties and Unitech Libor claims
We have previously reported on the progress of two seminal cases pending before the High Court: Graiseley Properties v Barclays and Deutsche Bank AG & Ors v Unitech. Both cases involve claims by those opposing the banks, namely Graiseley and Unitech, that certain derivative contracts, which they had been required to enter into as a pre-condition of obtaining loan facilities from the banks, which were referenced to LIBOR, were unsuitable contracts for them to make, a matter of which, it was alleged, the banks were well aware of.