Tuesday, 30 June 2015
Last updated 17 min 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.
May 27 2015 | 2:15pm ET
Support Hedge Funds Care, also known as Help For Children (HFC), by participating in this year's raffle. All proceeds go to support HFC's mission of preventing and treating child abuse. Read more…