Summary of the Damages and the Surplus of paid Interest
1. Damages caused by Deutsche Bank and RABOBANK’s LIBOR/EURIBOR-FRAUD and Manipulation
Due to their LIBOR/EURIBOR- Fraud and Manipulation will the Class Action-lawsuit demand that the Court should nullify the Interest Rate Swap-contracts. If honored by the Court it means that all Interest Installments paid by the client were unjustifiably paid and that all payments should be reversed. The damages will therefore consist of the balance between all the Interest Payments of the client and those of the bank.
2. Damages caused by Deutsche Bank and RABOBANK’s grave Violations of Duty of Care, Fraudulent Misrepresentations, Misleading Sales-pitch and Unlawful Raises and Imposing of Interest Rates and Premiums
Regarding these tortious acts committed by Deutsche Bank and RABOBANK the average damages of the Interest Rate Swap Contracts attached to a loan of €1M is € 200,000 over the last seven years. This is based on calculations of The Netherlands, but it will most likely be similar around the globe as well.
These damages can consist of the following:
Raising the Interest Rates, Imposing Extra Premiums and invoking Margin Calls
Measures which the bank can invoke at its own discretion, while they are supposedly part of the General Terms of the Swap, provide them with reasons to raise interest rates and impose extra Premiums. These invocations, as well as the “Margin Calls”, impose EXTRA interest Premiums that are added on top of the interest rate of the Swap, on top of the interest rate of the attached loan or on top of the interest rate of current accounts. This can mean:
- Periodic Premiums, allegedly related to market fluctuations;
- Extra Premiums, the height of which are not defined and lack clear and justified calculations;
- Extra Premiums that are based on vague carte blanche verbiage that allow the bank to easily arrive at certain opinions and conclusions supposedly showing that the Credit Rating (a.k.a. TIF) of the client is that of a “client of elevated risk for the bank” and which are often based on the Negative Market Value of the Interest Rate Swap according to the bank;
- Margin Calls, based on unfulfilling payments, the client’s TIF (including the Negative Market Value according to the bank), whereby the bank demands extra asset-backing and also imposes Extra Premiums;
- The clients position to negotiate new loans that are required to adequately run or grow the business is undermined and causes for the client a deprivation of possible future profits.
The EXTRA-Ordinary High Exit Costs of the Swap
The Exit Costs of the Swap ar nearly TWICE as high as those of Fixed interest rate loans by which the client is practically locked into the Interest Rate Swap because it will cost too much to get out of it. Thus, the client is not able to exit the Swap-contract, while the Terms of the Swap clearly state that Deutsche Bank and RABOBANK can do that at any given time. The client is therefore deprived of the choice and easier access to better-rated loans and revisions of its financial set-up thata re available on the market caused by the very strong decrease of interest rates since early 2009;
The High Amount of EXTRA Interest Paid in each Quarterly Installment of the Swap
The difference between the fixed rate of the Swap that has to be paid by the client each quarter and the LIBOR/EURIBOR that the bank pays has been disproportionately high since the fall of the rates early 2009. Clients have therefore not been deprived of opportunities to benefit from the fall of the interest rates in the market since early 2009;
Extra Appraisal Costs
These are the costs which the client has to pay on Forced Interim Appraisals on the clients assets in case the bank’s “opinion” says that the client has become one of elevated risk;
The Bank forces the client to sell out (vital) assets (far) below market value
Measures imposed on the client to be able to pay the bank the unjustified costs (often the extra imposed premiums) or demanded extra payments caused by the Swap due to the Bank´s labelling of the client being of elevated risk;
Signing off on extra (personal) liability
The client is eing forced to sign off on a personal liability for the execution of the Swap-contract;
The Notional amount of the Interest Rate Swap exceeds the attached loan;
Pointless Preceeding or Continuation of the Swap
The Interest Rate Swap Contract uselessly precedes the start of the term of the attached loan, or is continued while such loan is already fully paid off.