Credit Suisse fails in bid to dismiss suit by S'pore wealth client

[SINGAPORE] Credit Suisse Group AG has lost a bid to dismiss a lawsuit by a former private wealth client who is accusing the bank's Singapore unit of failing to explain the risks of a complex investment product.

Former stockbroker Koh Kim Teck sued the unit for US$26 million, claiming that it gave him too little time to raise collateral in October 2008 after he suffered losses from "knock-out discount accumulators", derivatives that commit investors to buying securities over a certain period.

Credit Suisse called the complaint frivolous because the Singapore resident is pursuing it in his personal capacity when it was his company, Smiling Sun Ltd, that had the banking relationship, according to court papers.