Saturday, 10 October 2015
Last updated 17 hours ago
Jul 6 2011 | 5:11pm ET
Hedge fund Rosen Capital Management has won its arbitration case against Bank of America Merrill Lynch.
The Financial Industry Regulatory Authority ordered BofA to pay the Santa Monica, Calif.-based hedge fund $63.7 million. Rosen, which had sought more than $90 million, accused Merrill of fraud, negligence, breach of contract and acting in bad faith when it made "unexpected margin calls" against the hedge fund in 2008. The FINRA panel did not specify the transactions in its ruling.
Rosen said the margin calls caused losses for two of its hedge funds—reportedly in excess of 80% in just a week.
BofA, which acquired Merrill amidst the financial crisis that year, is mulling an appeal.
"At all times, we met the contractual requirements of our relationship with this sophisticated hedge fund, which sought to blame us for losses during a period of extreme market volatility in October 2008," spokesman Bill Halldin said.
Oct 7 2015 | 4:57am ET
Charity A Leg To Stand On (ALTSO) will hold its 12th Annual Hedge Fund Rocktoberfest – NYC on October 15 and its 4th Annual Rocktoberfest - Chicago on October 22. Read more…