Financial trader sues Permanent TSB over alleged ‘tracker’ deal

A financial trader has sued Permanent TSB alleging he lost more than €900,000 and faces further losses after the bank failed to honour an alleged 2007 "tracker" loan deal to advance funds to him for his trading firm over a 20-year period.

Paul Fogarty claims Permanent TSB knew he needed about €100,000 last March to meet margin calls from his broker, IG Markets, and knew his positions would be liquidated if he failed to meet margin calls.

When the bank failed to advance the money between March 8th and 12th last, 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 1st, 2013, he made realised profits of some €461,389 carrying on intra-day trading activity, he added.

Aggravated damages
Mr Fogarty, 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, has sued PTSB for damages, including aggravated damages over alleged breach of contract, misrepresentation and defamation.

Mr Justice Peter Kelly yesterday granted an application by Denis McDonald SC, for Mr Fogarty, to fast-track the case in the Commercial Court after rejecting arguments on behalf of PTSB the case fell below the €1 million threshold for Commercial Court cases.

The claim arose from a €1.65 million alleged contract, the judge said.

Mr Fogarty claims PTSB agreed to provide a €1.65 million facility which, notwithstanding it was to be used for commercial purposes, was “to all intents and purposes” a family home tracker mortgage with an interest rate of the ECB rate, plus 0.75 per cent. He claims the only security for the loan was his family home, already mortgaged to PTSB.