No banker is likely to risk describing what they do as “God’s work”, but they might hope at least not to get on the wrong side of His earthly followers. Unlucky then for Germany’s Deutsche Bank and US investment bank Morgan Stanley, who are facing a $5m lawsuit led by a group of Irish nuns.
The Sisters of Charity of Jesus and Mary, the Holy Faith Sisters and the Irish Veterinary Benevolent Fund are among a group of 88 Irish individuals suing the two banks.
The nuns allege the two banks profited at their expense by failing to redeem an investment linked to the debt of German financial group Dresdner Bank and in so doing cost them millions of pounds.
In 2005 the nuns and other Irish investors bought euro-denominated notes worth €5.88m linked to Dresdner Bank bonds, but accuse Morgan Stanley of failing to deliver on a contractual pledge to redeem the debt after the German bank’s credit rating was cut below an agreed point.
Instead, Morgan Stanley is alleged to have postponed redeeming the notes until the value of Dresdner Bank debt had recovered to a level whereby the US bank would incur no losses, but which the nuns say ended up costing them $4.7m, as well as $718,734.80 in lost interest payments.
Morgan Stanley is alleged to have made an estimated $11.2m gain by delaying the redemption of the notes.
Here comes that really big bolt of lightning. Hardly anyone deserves it more than Morgan Stanley.