A Bank of Valletta client is accusing the Malta Financial Services Authority of bad faith and is calling for a liquidation of damages this caused her.

In a request filed in the First Hall of the Civil Court by Dr Jose A. Herrera and Dr David Camilleri, Maria Josepha Sultana, of Sliema, said that on 21 October last year she signed an agreement with Bank of Valletta about her complaint relating to €16,000 worth of 5.75% securities in Lehman Perpetual, renouncing her rights in connection with a loss of interests so as to be able to conclude the agreement with the bank.

On 31 October 2011, the MFSA wrote to her to inform her that they “had recommended to the bank to put you in the same position you were prior to the investment in the 5.75% Lehman Brothers Perpetual”.

The MFSA also informed her that “despite our strong arguments, the bank rejected our recommendation. After serveral meetings with bank officials, the bank acceded to our recommendation and on 5 May 2011 advised us that it would be meeting you to find an acceptable solution with regard to your holdings in perpetual securities”.

Ms Sultana said it was evident from this that the recommendations of the Bank of Valletta, subsequent to the MFSA’s interventions, were made before 5 May 2011 and that Ms Sultana had not been informed about the MFSA’s interventions.

Ms Sultana said this meant that the MFSA had not acted impartially between her and the bank. When her husband used to telephone the MFSA, the latter would reply they could not divulge any information, and this was so even between May 2011 and October that year. Ms Sultana said this amounted to bad faith as a result of which she was prejudiced.

Had the MFSA kept her informed about the conclusions of their interventions, she would not have accepted to renounce the interests from the last time interests were paid, up to the date of the agreement. Ms Sultana called for a liquidation and payment of damages caused by this, failing which she would proceed against the MFSA according to law.