McHale & Co. Solicitors Blog

Interest Rate Swap claims - Ongoing banking relationships and the fear factor.

I had an interesting meeting last week with a leading firm of Manchester Accountants. In particular I met with the Corporate finance team and the forensic team. They are gearing up to do a report for a client of mine on consequential losses.

We started discussing the wider picture with claims and the number of people who are frightened of taking on the bank because they fear that it will interfere with their ongoing banking relationship and put at risk current credit facilities of future credit applications.

It was interesting to hear the corporate finance partner who is dealing with many such credit applications for
clients at the moment make some very clear assertions. He is of the view that making a claim will not affect ongoing banking relationships. He went so far as to assert that “a claim has absolutely zero affect on lending decisions”.

It seems clear to me that the banks could make their position clear on this. But of course playing on fear is a tactic that banks will continue to use. I hope that there are more people in corporate finance who will tell it as it is and open the door to businesses getting the redress they deserve.

Leave a comment

Leave a Reply

(Your email will not be publicly displayed.)