In this first edition of the Banking Litigation Law Review, it is striking how similar the issues are that face banks and those who advise them across various legal systems. All countries experienced the effects of the global financial crisis from 2008 onwards and these implications have been far-reaching in many ways. They have given rise to much litigation and consequently led to developments in the law.Though new litigation arising from those events is no longer prolific, the law has developed against that backdrop and its results are here to stay.
The themes that emerge include the following: first, disappointed investors were keen to determine whether litigation could assist them in effectively reallocating the risks so that the economic consequences of the downturn fell elsewhere. This led to challenges to the capacity of investors to enter into the relevant contract. This was particularly a feature of financial products bought by public authorities and some of that litigation has continued through the past year. Secondly, there has been much litigation in relation to the information that was supplied to investors and that was taken account of by them in their decision to buy.