City Of London
Macquarie Staring at $49 Million Loss on FX Trades With Builder
- Australian bank pursuing Italian builder Cimolai for money
- Macquarie claim in UK court is latest tied to Cimolai trades
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Macquarie Group Ltd. says it’s facing losses of tens of millions of dollars after currency derivatives trades with Italian builder Cimolai SpA went awry.
The firms began entering into foreign-exchange trades with each other in 2017 but the relationship foundered in September when Cimolai failed to make payments tied to the transactions, according to a Dec. 14 claim lodged by the Australian lender in London. The Sydney-based bank canceled the deals and claims it’s owed a ‘termination payment’ of $49 million.