Abbey wins settlement over Barings venture
Friday 05 July 1996
When Barings collapsed in February 1995, its new owners withdrew support for a profitable joint operation called Abbey National Barings Derivatives, which was forced to curtail its activities as a result.
This January, Abbey issued a writ claiming breach of a five-year agreement with Barings to provide an office and personnel to run the joint operation.
The writ against Barings' administrators, Nigel Hamilton, Alan Bloom and Maggie Mills of Ernst & Young, claimed breach of the agreement and also alleged that ING had procured the breach.
Neither side would comment on the terms of the out-of-court settlement, but it is thought that pounds 30m of the money to be paid to Abbey National is for cash balances held in the business at the time Barings collapsed.
In addition, Abbey is thought to have claimed up to pounds 25m for loss of profits under the five-year agreement, based on the pounds 5m the joint company had made in its first full-year up to the Barings collapse.
The bank appears to have settled for about pounds 10m on top of the cash balances. Analysts said only the lost derivatives profits would affect Abbey National's own profit and loss account.
For much of last year the derivatives firm was able only to service existing customers and could not seek out new business, as a result of the loss of Barings staff and premises, which forced it to rely on a core group of Abbey personnel.
Abbey made clear at the time that the damage to the business was not a result of the Barings collapse but of actions taken afterwards by the administrators and ING, which bought Barings shortly after the crisis broke.
The firm, renamed Abbey National Financial Products, was not reopened to new business until October, but it has been hiring specialist staff and is believed to have been profitable for the following three months.
In a statement, the two sides said they had reached a "mutually satisfactory settlement" to the litigation.
- 1 PlayStation and Xbox hacked by Lizard Squad
- 2 The 'Black Museum': After 150 years, public set to see exhibits from police’s grisly crime museum
- 3 British actor Idris Elba cannot star as James Bond because he is black, says shock jock Rush Limbaugh
- 4 Vagina canoe artist defends herself over ‘obscenity’ charges
- 5 The Queen’s speech 2014: Recap and Twitter reaction to Game of Thrones reference
PlayStation and Xbox hacked by Lizard Squad
Antonio Martin shooting: Black teenager may have tried to ambush patrolman, says police officer's lawyer
Katie Hopkins speaks out on childhood obesity: 'Parents of fat children should be prosecuted for child cruelty'
Boxing Day snowfall set to push even more bargain-hunters online for sales
The 'Black Museum': After 150 years, public set to see exhibits from police’s grisly crime museum
British actor Idris Elba cannot star as James Bond because he is black, says shock jock Rush Limbaugh
Rozanne Duncan: Ukip expels councillor for 'jaw-dropping' comments made in BBC TV interview
Germany anti-Islam protests: 17,000 march on Dresden against 'Islamification of the West'
Ukip member gets into Christmas spirit with Union Flag plea to Santa 'for our country back'
BBC director Danny Cohen: Rising UK antisemitism makes me feel more uncomfortable than ever
Alex Salmond has 'broken his word to the Scottish people' says Scottish Lib Dem leader
iJobs Money & Business
Highly Competitive: Selby Jennings: Our client, a leading European Oil trading...
£43500 per annum + pension + holidays: The Jenrick Group: Night Shift Operatio...
£20000 - £25000 per annum + OTE £40,000 + Car + Pension: SThree: SThree are a ...
£20000 - £25000 per annum + OTE £35K: SThree: We consistently strive to be the...