Clients plan to serve Belgian bank KBC with papers stating it didn’t properly warn consumers of risks involved with CDOs, according to published reports.
The reports said that the complainants will be represented by Laurent Arnauts, a partner from the law office of Modrikamen. Reports said that they plan to challenge the banking and insurance group on failing to follow risk guidelines attached to the CDOs, and for having improperly composed CDO portfolios.
KBC has been conducting its own investigation into its CDOs following questions in February from customers. According to reports, KBC spokesperson Viviane Huybrecht said KBC will proactively look at all customer files and if, after a thorough investigation, it's found that KBC had shortcomings, it will assume its responsibilities.
Although there is no precise number of KBC customers with complaints, Huybrecht said KBC had heard from only a limited number.
The complaint will be followed by either a settlement or by legal action.