Baupost Blocking $8.5B BofA Mortgage Settlement

Dec 12 2011 | 12:52pm ET

Baupost Group and Bank of America agree on at least one thing: The hedge fund is doing its level best to sink the bank's proposed $8.5 billion mortgage bond settlement.

At a court hearing last week, a lawyer for Bank of America said that Walnut Place, the group seeking to block the settlement and remove the case to federal court, is actually Baupost, "known as a distressed debt or sometimes a vulture fund." On Friday, Baupost told its clients that it was, in fact, Walnut Place.

Baupost, or its Walnut Place alter-ego, is opposing the deal, which would resolve most of BofA's legal headaches from its 2008 purchases of Countrywide Financial Corp. More than 20 institutional investors have signed up to the settlement, seeking to impose it on other investors.

But Baupost doesn't plan on going so easily.

The Boston-based hedge fund did deny a rumor that it was shorting BofA, telling investors "we currently have no long or short position in equity, corporate debt or credit default swaps of Bank of America."


In Depth

Fundraising for Mid-Sized PE Funds: Should You Use a Registered B/D?

Dec 6 2016 | 7:18pm ET

When does a fund sponsor need to use a registered broker/dealer when raising capital...

Lifestyle

Trump Attends 'Villains and Heroes' Costume Party Dressed As...Himself

Dec 5 2016 | 11:16pm ET

U.S. President-elect Donald Trump attended a "Villains and Heroes" costume party...

Guest Contributor

A Hard Look At Your ‘Soft’ Hedge Fund Marketing Information

Dec 8 2016 | 9:03pm ET

Conventional wisdom holds that due diligence examines quantitative as well as qualitative...

 

From the current issue of

Since the inception of Modern Trader, a core editorial theme has centered on the wisdom and power of crowds. Editorial emphasis has focused on companies and projects engaged in the collection and analysis of information. 

AVAILABLE NOW at BARNES & NOBLE

NEWSTAND LOCATOR