Wednesday, 6 May 2015
Last updated 21 hours ago
Aug 17 2010 | 10:13am ET
Hedge fund VCG Special Opportunities Master Fund suffered another blow in court yesterday, where it has been battling to recoup losses it suffered as a result of investing in a series of credit-default swaps.
A lawsuit filed by the hedge fund against Wachovia Corp. was dismissed by the courts. In the lawsuit, the hedge fund alleged that it was forced to pay higher than normal margin payments on a credit-default swap. The U.S. district judge also ordered the VCG to pay Wachovia a yet-to-be determined amount.
In March, the hedge fund lost its bid to force a Citigroup broker-dealer division into arbitration over similar claims that the bank “suckered” the hedge fund into losing more than $18 million on credit-default swaps. A federal appeals court denied VCG’s bid to overturn a lower court decision that held Citigroup Global Markets was not a party to VCG’s lawsuit. The hedge fund accuses another Citi unit, Citibank, of violating the CDS agreement, leaving VCG on the hook for $10 million when Citibank wrote down the assets in the CDS.
According to VCG, Citibank downplayed the risk involved in the derivatives, as well as charging “far in excess of what Citibank actually required.”
Mar 20 2015 | 12:45pm ET
StreetWise Partners, a non-profit organization that works with low-income individuals to help them overcome employment barriers, raised over $275,000 at the 2015 Raising the Ante Charity Poker Tournament and Casino Event last Wednesday evening at Capitale. Here are some photos from the event. Read more…