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October 28, 1994|From Times Staff and Wire Reports

Suit Filed Over Derivatives: Procter & Gamble Co. filed the $130-million lawsuit against Bankers Trust New York Corp. over a derivative investment that turned into a huge loss for the consumer products giant. The suit, filed in federal court in Cincinnati, charges that Bankers Trust did not accurately and fully disclose the terms and risks of the investment it proposed to P&G. Derivatives are complex hedge investments whose value is based on stocks, bonds, commodities, currencies or other financial instruments. Procter & Gamble took a $102-million loss to close out two so-called interest rate swaps designed by Bankers Trust. The suit also seeks unspecified punitive damages.

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