Multi-millionaire and owner of the UK’s Daily Express, Richard Desmond, is suing Credit Suisse, alleging that the bank fraudulently sold him a complex derivative, stating that the £50 million ($79 million) financial security was “incomprehensible” and gave him “inappropriately large exposure”. In other words, he bought a piece of shit and is suing the shit salespeople, and the salespersons happen to wear bespoke suits and work for a debt slave bank.

Pursuant to court filings with the High Court in London, Desmond claims the 2007 deal was arranged by hedge fund GLG, who eventually left him owing £20 million ($31.5 million), and who is now asking the court for relief in declaring the transaction void, or have a similar ruling with regard to money damages (make the parties whole).

Mr. Desmond claimed he had little understanding of the very complicated financial product rocket scientists and mathematicians can’t comprehend: “It was incomprehensible except to an expert in complex derivative transactions. The complexity of the transaction involved structural, credit, market and performance risks that would not have been evident to Mr Desmond,” according to papers.

This marks a string of claims by businesspeople large and small. The UK’s Financial Services Authority is currently investigating the sale of hedging products to small and medium-sized businesses as well.

Mr. Desmond is suing for breaches of conduct of business rules and misrepresentation, among other common law claims.

Story is HERE.

Things like the circumstances discussed in this article is what wakes people up in a very nonchalant, every day sort of way – small business people are probably forced to understand (or understand how much they don’t understand) about derivatives and financial products because they got screwed by them and want to get their money back. During that discovery process of learning and going to court, they realize the outright robbery the banks pulled off on them, and then they tell their families, and friends, and one of those family or friend members may know a little more, or may get an idea spark in their head . . . that’s how it works, folks.

There’s a line of people waiting to sue the banks over business hedging products, of course, big fish like Mr. Desmond step in first because they have the lawyers and capability to do so right away. The banks can’t be in a comfortable position – it’s damned if they do, damned if they don’t. If they settle without either party admitting guilt, then the money amount will send a signal to all potential litigants that there’s money to grab, which hurts the banks badly and provides them with one massive legal migraine headache that’ll drag and drag for months and months. If they fight then a lot of uncomfortable factoids start creeping in, and the stakes get highly interesting – assume Mr. Desmond loses, there’s still a line behind him waiting to give their shot.

Anyway, this is the supposed “lazy summer” in financial markets when all the senior traders and big boys are on vacation, yet we have some of the most damning and bizarre financial news coming in virtually every day. A period of big selling usually arrives in September and October, so things should get interesting in the markets soon, adding another twist to the bizarre drama that is the financial world.