Financial Times FT.com

Mexico attacks ‘unethical’ derivatives selling

By Stephen Fidler and Adam Thomson in Mexico City and Jonathan Wheatley in São Paulo

Published: October 23 2008 00:11 | Last updated: October 23 2008 00:11

Mexico’s central bank chief has accused investment banks of behaving irresponsibly and unethically in marketing derivative products to companies – warning that the problem extended far beyond Mexico.

In recent weeks, many of Mexico’s biggest corporate names have admitted billions of dollars of mark-to-market losses through exchange-rate derivatives, sold by banks as a form of insurance against currency movements.

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