Friday, 22 August 2014
Last updated 10 min ago
Dec 15 2010 | 1:42am ET
It took a few tries, but the Royal Bank of Scotland has won a collateralized debt obligation lawsuit against hedge fund Highland Capital Management.
A British court awarded the bank about £19 million, six months after first deciding in the bank's favor. Still, Justice Michael Burton failed to grant RBS everything it wanted; in September, the bank asked for about €40 million, what it claimed was the entire amount of its loss. RBS was also ordered to pay its own costs.
At issue was a CDO that did not close because of the "collapse of the financial markets" two years ago. The judge said that Highland should cover the difference between the amount of its outstanding financing for the failed CDO and the value of the loans its seized when it called in the financing.
But the judge also took aim at RBS, accusing it of "deception" and Sam Griffiths, head of European high-yield trading, of lying. RBS is now investigating Griffiths.
The bank remains embroiled in a lawsuit with Highland in New York, where RBS accused Highland of deceiving it into restructuring a CDO.
Aug 4 2014 | 7:42am ET
By now, U.S. and international subscribers have received their home or office delivery of the special 500th issue of Futures magazine. You can too!—a very special offer follows. The issue is the largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders. Read more…
The July/August 2014 issue is our largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders.
The Alpha Pages Editor's Note