ACC ‘mis-sold bonds as greed took over’

ACC Bank marketed borrow-to-invest tracker bonds as low-risk to hundreds of Irish customers despite being aware of concerns by the financial regulator, actuaries and within the bank itself about such products, the commercial court was told yesterday.

While ACC was publicly saying in late 2003 that borrowing to invest in products linked to stock market performance was “not a good thing”, ACC within three months was “privately peddling it for all it was worth”, the bank’s “own greed took over” and it “mis-sold” the bonds, John Gordon SC said.

ACC staff were told to “flatter” customers they regarded as high-net worth persons, being offered “exclusive entry to a private club” of a privileged few with access to highly profitable investments, he said. Investors were told there was “nothing to worry about“, this was “a fantastic product” and the bank would give them the money to make the investment.