Investor sued for Accumulators gets new hearing
An investor, who has been sued by a French bank for $6.4m for losses from Accumulators, will get a new hearing after he appealed against a High Court decision in favor of the bank, reports the 20th April issue of The Straits Times (Investor sued for $6.4m gets new hearing).
The investor claimed that he never authorised the transactions.
This is not the first court case linked to Accumulators. I written about how Accumulators work here.
Like what Warren Buffett said “You only know who is swimming naked when the tide goes out“, many investors are blinded by the good returns during bull markets and do not consider the repercussions when the bears come. Product providers are only too happy to sell to earn the commission. More often than not, the potential upside is highlighted while the downside is down played. Transactions are what they are after. Read my previous post on Why Everyone Encourage You To Trade.