An interesting story in the Jerusalem Post. Apparently, an application for a class action against Israel’s Bank Hapoalim (for NIS 500 million, approximately US$118 million) was filed this week at the Tel Aviv District Court. The plaintiff, Ella Politis, a customer of the bank, alleges that for a number of years Bank Hapoalim has been unfairly hiding fees in it structured products. She demands that the bank return to its customers the hidden fees that it charged on structured deposits, which she estimates at 500 million NIS. The story can be accessed here.
"No customer would ever knowingly agree to pay a NIS 700 commission for investing NIS 20,000. No customer would ever knowingly agree to pay a 3.5% commission on the investment. No customer would ever knowingly agree to pay a 90% commission on an option he purchases, and therefore Bank Hapoalim makes sure that its customers pay all these unknowingly," the claim states.
It will be interesting to see how the law suit plays out – not just for the developing market in Israel but also for potential repercussions in other countries.
We wrote about a Hapoalim subsidiary, Poalim Asset Management, in June 2006. The story can be accessed here. The-London based firm distributes structured products to its high-net-worth clients through Bank Hapoalim. The asset manager regularly holds 'beauty contests' to find the right partner to structure the investments. Poalim Asset Management works with a list of key investment banks such as Barclays Capital, Nomura, BNP Paribas and Calyon.
Comments (1)
Interesting theme have mentioned. With pleasure I shall support.
And in general, good blog
Posted by Barbara | April 19, 2007 7:13 AM
Posted on April 19, 2007 07:13