BRITAIN'S highest court yesterday gave former employees of the collapsed Bank of Credit and Commerce International (BCCI) a chance to sue for compensation for the stigma of having worked for the fraud ridden bank.

In a precedent setting case, two former senior BCCI employees, Mr Raihan Mahmud and Mr Qaiser Malik made claims against BCCI, now acting through liquidator Deloitte & Touche, saying they could not get jobs because of their link to the bank.

They will now be allowed to start their proceedings against BCCI, which collapsed in 1991 with debts of more than $12 billion (£7.94 billion) amid the biggest fraud in banking history.

The judgment by the House of Lords could affect hundreds of former BCCI employees some of whom are making counter claims, including a stigma element against claims by the liquidator for the payment of loans made to them by BCCI.