The Bank of Greece has vindicated owner Gerasimos Kalogiratos in his legal showdown with lender HSBC Bank over the alleged mis-selling of an interest-rate swap 11 years ago.
HSBC violated good banking practices by selling the swaps to Kalogiratos' Amarilis Shipping Co, the central bank said in a disciplinary ruling obtained by TradeWinds.
The London-headquartered bank failed to examine whether Amarilis was sophisticated enough to buy such financial products, and it did not precisely set out the swaps' terms in a proper investment services provision contract, the national banking regulator said.
