According to information obtained by News, Mr. Jordan, who led his own Formula One team for a while and rose to prominence in the glamorous and lucrative world of Grand Prix motor racing, has launched a lawsuit against HSBC’s private banking division in the London High Court.
Mr. Jordan is suing the FTSE-100 institution for nearly £5 million, claiming he lost money after he put £46.9 million into the HSBC GIF Global Credit Floating Rate Fixed Term Bond Fund in 2019.
In addition, he is requesting that the bank give him interest on funds that were lost due to margin calls because of the declining performance of the investment.
People acquainted with the case state that Pendragon Investment Holdings (PIH), Mr. Jordan’s investment vehicle, is requesting around £5.5 million from HSBC.
According to PIH, HSBC executives systematically overstated the fund’s default risk and failed to take into account Mr. Jordan’s stated willingness to assume additional risk, according to a court document that News was able to obtain.
The paper stated that the lender with its headquarters in London had been a client of the former F1 executive since 2009.
The judicial battle will increase scrutiny of how banks sell sophisticated clients complex products after a series of it.
