Rosen Wins $64M Arbitration Award Against Merrill Lynch

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.


In Depth

Kettera Q&A: The Advantages of Alternative Investment Platforms

Oct 28 2016 | 5:52pm ET

The past several years have seen a distinct push towards easier and cheaper access...

Lifestyle

Midtown's Plaza District Fades As Manhattan Office Landscape Shifts

Nov 22 2016 | 6:32pm ET

Lower leasing costs, more efficient office space and the hope of projecting an image...

Guest Contributor

Nowhere to Hide: Why the Future of Asset Management Depends on Innovation

Nov 15 2016 | 6:55pm ET

Information technology has reshaped the asset management industry’s periphery,...

 

From the current issue of

Chicago-based independent futures brokerage and clearing firm R.J. O’Brien & Associates (RJO) has hired industry veteran Daniel Staniford as Executive Director, responsible for the firm’s institutional business development in New York and London.

AVAILABLE NOW at BARNES & NOBLE

NEWSTAND LOCATOR