Monday, 22 September 2014
Last updated 1 hour ago
Jul 27 2011 | 11:50am ET
A New York State appeals court has all but ended UBS' legal battle with Highland Capital Management over losses it suffered in a collateralized debt restructuring.
The court dismissed most of the bank's second lawsuit against the hedge fund, ruling that UBS' amended fraud complaints were covered by the dismissal of most its first lawsuit at the beginning of last year. UBS refiled the case last June, accusing Highland of fraudulently inducing it to restructure the CDO in 2008 by providing "false, incomplete and otherwise misleading" information.
But "UBS's claims against Highland in the original action and in this action all arise out of the restructured warehousing transaction. While the claim against Highland in the original action was based on Highland's alleged obligation to indemnify UBS for actions taken by the affiliated funds, and the claims against Highland in the second action arose out of Highland's alleged manipulation of those funds, they form a single factual grouping," the court ruled last week. "Both are related to the same business deal and to the diminution in the value of the securities placed with UBS as a result of that deal."
The appeals court did say that UBS would be permitted to sue Highland for breach of good faith and fraudulent conveyance, but only for "conduct alleged to have occurred after the commencement of the prior action" in early 2009.
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.