Absa suing Nedbank for trading losses
TWO of South Africa's "big four" banks could find themselves locked in a titanic court battle, the likes of which the country has not seen before, according to analysts.
The country's biggest retail bank, Absa, revealed this week that it is suing the country's fourth-biggest bank, Nedbank, for about R773 million it claims it suffered in single-stock trading losses as a result of exposure to Pinnacle Point Holdings.
Marthinus van Rensburg, head of Absa's legal department, confirmed that the bank, which is owned by UK group Barclays, has issued a summons against Nedbank in relation to the events surrounding the trading of single-stock futures over the shares of Pinnacle Point Holdings "and subsequent defaults", but says Absa cannot comment further on the matter as it is now the subject of legal proceedings.
Analysts, who wished to remain anonymous, predicted that unless the two banks could reach an out-of-court settlement, they could find themselves locked in a huge legal battle the likes of which has not been seen in South Africa before.
Because the matter is now sub judice, no one was prepared to predict an outcome. Nedbank has made it clear that it plans to defend the action.
Sinudeity
WHO CARES?!Hacktivists leaked PROOF that South African banks are colluding.
But NOTHING came out of this.
The banks are still colluding, and the government isnt investigating.
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tumzangwana
WHO CARES?!Hacktivists leaked PROOF that South African banks are colluding.
But NOTHING came out of this.
The banks are still colluding, and the government isnt investigating.
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SERIOUS?
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Sinudeity
tumzangwana - Very serious.The irony is, that the government went after the hackers, not the banks.
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Sinudeity
http://www.mydigitallife.co.za/index.php?option=com_myblog&show=1043476Report Abuse
tumzangwana
@sini didnt know that phela, itjoo ja neh............... thanx for that info phela some of us we only watch the news after i dont know how long and we dont even read the business and financial sections of the newspapers. thanx a lot.
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Sinudeity
tumzangwana - Anytime miss.We need to break this cycle of corporate greed.
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Vhamsanda
ABSA are the biggest swindlers in SA iro bank fees. I am busy pulling out.Report Abuse