Monday, 1 September 2014
Last updated 2 days ago
Jun 6 2012 | 10:12am ET
A U.S. judge has tossed several claims against Spain's Banco Santander over Bernard Madoff feeder funds run by its hedge fund unit, Optimal Investment Management.
U.S. District Judge Shira Scheindlin in New York ruled that a two-year-old Supreme Court decision bars the effort to recover losses on the Optimal Strategic U.S. Equity Fund. The Supreme Court ruling, National Australia Bank v. Morrison, bars federal securities fraud lawsuits covering foreign securities traded abroad.
Optimal investors argued that because Madoff claimed to trade on the New York Stock Exchange, their investments should be protected. The only problem, according to Scheindlin, is that Madoff never actually made the trades. Therefore, the lawsuits "failed to overcome the presumption against the extraterritorial reach" of U.S. securities laws.
Scheindlin did allow the investors to continue to pursue other fraud and negligent misrepresentation claims against Santander and Optimal.
Investors in the Optimal fund, which had all of its money with Madoff, lost some US$3.1 billion in the fraud. Santander three years ago offered US$1.82 billion to investors to settle the matter.
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…
Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...