Vestia Asks Court to Void $924 Million of Credit Suisse Swaps

Stichting Vestia Groep, a Dutch affordable-housing provider that nearly collapsed as a result of losses on derivatives, asked a London court to void 700 hundred million euros ($924 million) in interest-rate swaps after it was sued by Credit Suisse Group AG.

Credit Suisse should have known that the derivatives were inappropriate trades conducted by a Vestia employee who breached his duties to the company, Vestia said in court documents. The organization said the former treasurer was arrested by Dutch police as part of an investigation into swaps transactions.