Tuesday, 21 October 2014
Last updated 1 hour ago
Jul 26 2010 | 12:56pm ET
Goldman Sachs has appealed a $20.5 million arbitration award against it won by the creditors of collapsed hedge fund Bayou Group.
Goldman Sachs Execution and Clearing cleared the Connecticut hedge fund’s trades before its Ponzi scheme fell apart five years ago, costing investors more than $400 million. According to some 200 unsecured creditors, Goldman showed “either gross negligence or a willful choice to ignore signs of fraud” at Bayou.
A Financial Industry Regulation Authority arbitration panel sided with the creditors last month, the $20.5 million the largest arbitration award ever ordered against a securities firm. But Goldman counters that the money in question, allegedly fraudulently transferred between Bayou accounts, was never in its possession, and accused the arbitration panel of having “manifestly disregarded the law and exceeded its authority” in adopting a “novel bankruptcy law theory.”
“The debtors now stand to be paid twice—once through withdrawals before the bankruptcy was filed and once after through the award—for the same alleged transfers,” Goldman claimed in its lawsuit, filed Friday in Manhattan bankruptcy court.
Ross Intelisano, a lawyer for the creditors committee, called Goldman’s lawsuit “completely without merit.”
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...