Tuesday, 23 September 2014
Last updated 5 hours 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.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitich, CIO of Petty Endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
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…
Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.