San Marino Bank Loses Bid to Appeal 2011 Barclays CDO Ruling
Stock Chart for Barclays PLC (BARC)
A San Marino bank can’t appeal the 2011 U.K. ruling that Barclays Plc (BARC) didn’t mislead Cassa di Risparmio della Repubblica di San Marino SpA when it sold it collateralized debt obligations in 2000.
A judge in the 2011 case dismissed the claim brought by the bank, which alleged the way the British lender rated the notes at the heart of a 92 million-euro ($115 million) lawsuit was “a scam.”
Barclays and lenders in the region have clashed before over CDO transactions. The London-based bank and Banca Popolare di Intra Scrl settled a claim in 2010 over derivatives Barclays sold the Italian regional lender in 2000. Barclays had been accused of selling a CDO that was likely to default. Neither party admitted liability in their settlement.
Barclays had denied the allegations it sold the San Marino bank structured notes that misrepresented the risks.
Dario Loiacono, a lawyer for the San Marino bank, declined to comment on the ruling. A call and e-mail to Barclays didn’t receive an immediate response.
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