Saxo Faces Legal Battles With Clients After Franc Shock - Bloomberg:
"Saxo Bank A/S says it’s bracing itself for lawsuits from some clients who are unhappy with its efforts to have them cover losses on their Swiss franc accounts after the bank repriced trades retroactively.
The Danish bank set a Jan. 23 deadline for clients to respond to its estimates of how much they’d lost trading francs using borrowed funds. Saxo says talks with institutional and retail customers will probably take “a couple of months.” The bank estimates its own losses may be as high as $107 million.
“It’s not unlikely that we’ll face legal challenges,” Steen Blaafalk, Saxo’s chief financial officer and head of risk management, said yesterday in a phone interview. “If we need to debate it through such a channel, we will of course do that, but hopefully we don’t have to and we are actively working with clients to find a plan of action for repayment.”"
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