Friday, 24 April 2015
Last updated 5 hours ago
Nov 1 2011 | 9:58am ET
A federal appeals court in Manhattan has likely put an end to one hedge fund's four-year fight with Wells Fargo & Co. over a credit default swap.
The Second Circuit Court of Appeals overturned a lower-court ruling that could have subjected Wells Fargo, which inherited the case when it acquired Wachovia Corp., to a Financial Industry Regulatory Authority arbitration hearing. The appeals court ruled that Vanquish Capital Group had no right to such a hearing.
The negative result is the second in a month for VCG: Its Special Opportunities Fund was ordered to pay more than $2 million to Wells Fargo earlier in October, the result of the bank's countersuit against the hedge fund.
VCG had claimed that Wachovia demanded higher-than-normal margin payments on a 2007 CDS—what began as $750,000 in collateral for a $10 million swap on a collateralized debt obligation rose to more than $10 million—more than one-sixth of the hedge fund's total assets—within several months. VCG sued Wachovia when it demanded a final $550,000 payment that would have pushed VCG's collateral in excess of the face value of the swap.
VCG also lost a similar lawsuit against Citigroup.
Mar 20 2015 | 12:45pm ET
StreetWise Partners, a non-profit organization that works with low-income individuals to help them overcome employment barriers, raised over $275,000 at the 2015 Raising the Ante Charity Poker Tournament and Casino Event last Wednesday evening at Capitale. Here are some photos from the event. Read more…