tag:blogger.com,1999:blog-5124857623766724513.post3646124510610478881..comments2024-01-13T08:27:40.266+00:00Comments on Suq Al Mal: Lu'lu (Pearl) Real Estate -2009 Losses KD9.5 Million Bank Lawsuit for US$539.2 MillionAbu 'Arqalahttp://www.blogger.com/profile/01296250358695456059noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-5124857623766724513.post-60343750483766766642010-08-06T17:52:49.348+01:002010-08-06T17:52:49.348+01:00Zamaroddah shareholders also significant Gulf Bank...Zamaroddah shareholders also significant Gulf Bank investor and was on good terms with Bassam. Easy enough to rewrite the derivative contracts with Pearl as counterparty.Unknownhttps://www.blogger.com/profile/10128750910727662828noreply@blogger.comtag:blogger.com,1999:blog-5124857623766724513.post-53847370468732910922010-08-05T13:44:04.481+01:002010-08-05T13:44:04.481+01:00Laocowboy2
There were rumors (note that word) tha...Laocowboy2<br /><br />There were rumors (note that word) that the counterparty client was related. And that one was a primary reason why the authorities surgically removed the Board and elements of senior management.<br /><br />But who other than the principals really knows?<br /><br />And if it worked for Procter and Gamble, why not Pearl?Abu 'Arqalahttps://www.blogger.com/profile/01296250358695456059noreply@blogger.comtag:blogger.com,1999:blog-5124857623766724513.post-90699890908581048842010-08-05T10:03:11.221+01:002010-08-05T10:03:11.221+01:00Not entirely sure of the derivatives structure but...Not entirely sure of the derivatives structure but effect on GB was the same - disasterous. But perhaps some mis-selling by someone as well - the details will be interesting when and if this eventually comes to court. If someone from GB "sold" the product to the counterparty (whoever this may be) then there could be a defence in law. I would guess that the lawsuit is more a show to impress on shareholders that GB management have done all they can to recover the very real losses than a realistic hope of a real recovery.Laocowboy2noreply@blogger.comtag:blogger.com,1999:blog-5124857623766724513.post-79203889727186006902010-08-04T15:07:08.264+01:002010-08-04T15:07:08.264+01:00Advocatus/Laocowboy2
Many thanks your comments.
...Advocatus/Laocowboy2<br /><br />Many thanks your comments.<br /><br />I take it from your these that this is "fall out" from the famous Gulf Bank derivatives implosion.<br /><br />I guess I should read the KSE announcements more closely. I missed the announcement by either Pearl or the bank about the Pearl case!<br /><br />As to an explanation how Pearl could be party to the lawsuit, could it be that Pearl was a co-signer on the transactions? Not the main credit the bank hung its proverbial "credit hat" on, but a "nice to have" second party?<br /><br />And that GB is pursuing - sorry for the pun - a derivative suit (against Pearl) from its suit against Abu Wasta (its primary client on the deal). <br /><br />Also one final question - the structure of the original GB derivatives contracts. <br /><br />I had understood that GB had a derivatives transaction with its client and then a mirror transaction with the foreign financial institution.<br /><br />Not that its client had a contract with the foreign financial firm with a GB guarantee on it.<br /><br />Did I miss something again?Abu 'Arqalahttps://www.blogger.com/profile/01296250358695456059noreply@blogger.comtag:blogger.com,1999:blog-5124857623766724513.post-77038883701921201032010-08-04T09:26:57.403+01:002010-08-04T09:26:57.403+01:00Interesting. But unless Pearl was actually the ori...Interesting. But unless Pearl was actually the original counterparty to the duff derivatives contracts that GB guaranteed, how did AlZ move the contracts over after they had gone wrong?Laocowboy2noreply@blogger.comtag:blogger.com,1999:blog-5124857623766724513.post-51857824009974574572010-08-04T08:43:10.916+01:002010-08-04T08:43:10.916+01:00I understand that Pearl got stuffed with the deriv...I understand that Pearl got stuffed with the derivative contracts from Al Zamaroddah - was there a Jassim Zainal lurking around at the parent co who was ex Gulf Bank Head of Investments and Secretary to the Board? Word was all the good assets were being removed from Pearl and it ws being set up as the fall guy!Unknownhttps://www.blogger.com/profile/10128750910727662828noreply@blogger.com