Saturday, 28 March 2015
Last updated 10 hours ago
Mar 14 2011 | 12:28pm ET
UBS has resigned itself to keeping more than $35 million in the bank as it prepares for a December trial over a hedge fund's claims that that bank sold it "vomit" and "crap."
The Swiss bank last month withdrew its appeal of a Connecticut state court order forcing it to put $35.6 million aside to cover a potential verdict against it in a lawsuit brought by hedge fund Pursuit Partners. According to Pursuit, UBS sold it a collateralized debt obligation despite its own concerns that ratings agencies were poised to downgrade the then-investment grade securities. The Moody's Investor Services and Standard & Poor's did just that, causing Pursuit to lose its entire $40.5 million investment.
In September 2009, Judge John Blawie ruled that, in light of internal e-mails at UBS, one calling the CDOs "vomit" and another bragging about selling "more crap to Pursuit," the hedge fund "presented sufficient evidence to satisfy the probably cause standard with respect to their claim that UBS was in possession of superior knowledge."
UBS appealed that ruling, but did not say why it had chosen to give up that fight. The lawsuit is set to go to trial in December—the first time, according to Pursuit's attorneys, that a hedge fund claim over CDO losses will go to trial.
Mar 9 2015 | 6:35am ET
As more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…
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…