BANKING & FINANCE - Feb. 7, 1995

Suit Expanded Against Bankers Trust: Procter & Gamble Co., which took a $102-million charge last year for derivative-related investment losses, expanded its lawsuit against Bankers Trust Co. to include a second derivatives deal involving German marks. Separately, in a blow to its emerging-markets business, Bankers Trust’s parent company lost four top Latin American trading specialists to Wall Street rival Donaldson, Lufkin & Jenrette Inc. Four managing directors--including the heads of Latin American trading, derivatives and capital markets activities--joined a newly formed Latin American business group at Donaldson Lufkin. Procter & Gamble’s amended complaint against Bankers Trust seeks an additional $65 million in compensatory damages, bringing the total to $196 million. The firm is also seeking unspecified punitive damages. In response, Bankers Trust said it continues to expect full payment on the transactions and will fight the lawsuit.