Trader sues PTSB over loss of €900,000
A FINANCIAL trader claims he lost some €900,000 after a bank failed to honour an alleged 2007 "tracker" loan agreement to advance funds to him for his trading business over a 20-year period.
Paul Fogarty is suing Permanent TSB, claiming it knew he needed about €100,000 last March to meet margin calls – which are required to bring up the value of an investment following a decrease below a certain level – from his broker because the bank had previously advanced funds to him to meet such margin calls.
The bank knew the broker, IG Markets, would liquidate his positions if he failed to meet margin calls, he said.
When the bank failed to advance the money, IG Markets sold his instruments and he suffered an immediate loss of more than €900,000.
Because his entire portfolio of equities, derivatives and other financial instruments was liquidated, he was unable to carry on his business and will suffer lost earnings, he claims. Up to March 1 of this year, he made realised profits of some €461,389 carrying on intra-day trading activity, he added.
Mr Fogarty, of Foggy Hill, North Shore, Greystones, Co Wicklow, who held senior positions in Davy and Bloxham stockbrokers before beginning full-time trading on his own account, sued PTSB for damages, including aggravated damages over alleged breach of contract, misrepresentation and defamation.
Judge Peter Kelly yesterday granted an application by Mr Fogarty to fast-track the proceedings in the Commercial Court after rejecting arguments on behalf of PTSB that the case fell below the €1m threshold for Commercial Court cases.
The claim arose from a €1.65m alleged contract, the judge said.
Mr Fogarty said he had approached PTSB in 2007 with a view to financing the business.
He claims the only security for the loan was his family home, already mortgaged to PTSB.