Hedge Funds Delay Depositions In WaMu Bankruptcy

May 13 2011 | 12:21pm ET

Four hedge funds that had a hand in the Washington Mutual bankruptcy have angrily denied allegations that they traded the defunct bank's shares using confidential information. But most of them seem less-than-interested in being deposed about it.

Executives of Appaloosa Management and Centerbridge Capital Partners have again delayed scheduled depositions—for the third time, the Puget Sound Business Journal reports. The Appaloosa representative, originally scheduled to be deposed in March, won't have to talk to lawyers for WaMu stockholders until May 26. Centerbridge, which was to face the deposition today, will also now do so on May 26.

Barring, of course, further delays.

Shareholders won the right to question the hedge funds, which signed on to WaMu's Chapter 11 bankruptcy plan but refused to renew their support earlier this year, about their trading in WaMu securities; some claim the funds used confidential information they learned during the creation of WaMu's reorganization plan. WaMu sold its banking business to JPMorgan Chase in 2008 after federal regulators seized it.

The shareholders have questioned at least one hedge fund official: A representative of Aurelius Capital Management was deposed last week. Owl Creek Asset Management's deposition is currently scheduled for next week.


In Depth

Q&A: Brevan Howard’s Charlotte Valeur Talks Strategy

Sep 18 2014 | 11:18am ET

Charlotte Valeur chairs the board of Brevan Howard Credit Catalysts, an LSE listed...

Lifestyle

Hedgies Rock Out For Children's Charity

Sep 15 2014 | 8:40am ET

It's that time of year again—when hedgies trade in their spreadsheets for guitars...

Guest Contributor

Volkered: How Financial Sector Reforms are Creating Opportunities for Hedge Funds

Sep 16 2014 | 11:28am ET

New regulations have dramatically curtailed proprietary trading activity in investment...

 

Futures Trending

FINalternatives Most Popular

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

September 2014 Cover

The London Whale: Rogue risk management

Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.