Abu Dhabi bank sues Credit Suisse over SIV restructuring

Abu Dhabi Commercial Bank has filed a lawsuit against Credit Suisse and Standard & Poor’s in New York over its investment in a structured investment vehicle (SIV), Stanfield Victoria. The suit alleges that Credit Suisse misled the bank when it restructured the SIV in 2007, and that S&P provided inaccurate investment-grade ratings on the structure.

The mid east bank says it has fully provision against its funded position in the SIV, which it bought in 2005 and 2006, but wants to protect itself from future losses on the unfunded credit default swap it wrote as part of the restructuring. The announcement quotes ADCB’s chief executive Ala’a Eraigat as saying that the bank has not made a pay-out on the swap to date.