Monday, 22 December 2014
Last updated 19 min ago
Jul 1 2011 | 12:41pm ET
Six months after losing a court battle with the Royal Bank of Scotland on the bank's home turf, Highland Capital Management has sued RBS on its own—for more than three times as much as it was ordered to pay in December.
The hedge fund sued the bank in Dallas federal court over a collateralized debt obligation that Highland crafted with RBS financing, The Telegraph reports. The deal failed to close when the markets collapsed in 2008, leading RBS to call in its loans.
In December, a British judge sided with RBS, ordering Highland to cover the €22 million difference between the value of the loans after the deal failed and the outstanding financing. But the judge also gave Highland ample ammunition for its new lawsuit, blasting RBS' behavior.
Justice Michael Burton accused the bank of "deception" and running a "sham" auction. He also alleged that Sam Griffiths, former head of high-yield trading at RBS and one of two individuals named in the Highland suit, "knowingly" lied to clients.
Highland picked up where Burton left off, accusing RBS of fraudulent inducement, fraud and unjust enrichment. RBS has asked the court for an injunction against the case being heard in Texas.
Dec 1 2014 | 10:21am ET
As 2014 winds down, Northern Trust Hedge Fund Services executives took some time to share their outlook on trends facing the industry in 2015. Read more…
Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.