Reuters reports that Commerzbank is suing Morgan Stanley for £620,000 plus interest as the German investment bank claims that its US rival is guilty of breach of contract over an interest swap transaction the two parties allegedly entered into.
The German bank claims that it entered into the transaction in June through broker Tradition via e-mail and telephone calls. When Commerzbank tried to get confirmation of the deal, Morgan Stanley claimed to know nothing about it.
Commerzbank was forced to liquidate trades connected to the swap and suffered a loss of £620,000 as a result. The bank is also suing Tradition, who it believes was responsible for ensuring that the deal went through.