Friday, July 31, 2009

Stanchart lost court case on derivatives

Standard Chartered Bank lost a court case on derivate transaction filed by PT Nubika Jaya. Court says the bank violated central bank regulation, Bisnis Indonesia reported.
Central Jakarta Commercial Court ruled in favor of Nubika Jaya, a palm oil producer, on Thursday, July 30. Stanchart is ordered to return US$5.25 million funds to Nubika, while Nubika shall return Rp52.18 billion to Stanchart.
Judges said Stanchart violated Bank Indonesia Regulation No. 7/6/2005 about Transparency of Banking Products and The Utilization of Customer's private data.
Nubika entered into a callable ratio forward currency option with Stanchart in September 12, 2008. The court of justices blamed Stanchart for the agreement written in English with "complex terms".




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