A former stockbroker who lost $26 million in investments with Credit Suisse during the global financial crisis in 2008, is suing the Singapore branch of the Swiss bank.
Koh Kim Teck, 63, claims that the bank had wrongly advised him to invest in high-risk structured products that were unsuitable for his objectives of wealth preservation.
In a report by the Singapore publication «The Straits Times» Koh claims that the bank had failed to monitor and keep him informed of the risk exposure of the account, breaching its duties to manage his private wealth account with care.
Unfair Requests
He also alleges that it was unreasonable for the bank to give him only four hours' notice to top up an additional $5.7 million in collateral before closing out his account, which resulted in the losses.
During the first day of a scheduled three-week trial, his lawyers portrayed Koh as a man of substantial wealth who was relentlessly courted by bank employees pushing high-risk products.
A Savvy Investor
The Swiss bank contended that the losses were a consequence of Koh's own investment decisions and the global financial crisis, not through any fault of the bank.
The bank also disputed Koh's attempt to portray himself as having been led astray by its employees.
It said Koh, who retired as the general manager of a prominent stockbroking company listed in Malaysia, was a sophisticated and savvy investor.
The case continues...
