Tuesday, 23 September 2014
Last updated 2 hours ago
Jul 11 2012 | 12:30pm ET
Some two dozen hedge funds and money managers will have to get in line with other unsecured creditors of Lehman Brothers' brokerage business, a federal judge has ruled.
U.S. Bankruptcy Judge James Peck rejected the hedge funds' request to have their soft-dollar claims treated as those of customers. Had Peck agreed with them, the hedge funds would have been repaid their soft-dollar balances before creditors got anything.
Instead, Peck sided with Lehman trustee James Giddens, who had argued that the soft-dollars were not customer cash, but more like frequent-flyer miles.
"This determination is correct both because the soft-dollar accounts do not hold any customer property and because the soft-dollar claims are based on a breach of contractual obligation of LBI to provide research services to its customers," Peck wrote. As such, the hedge funds' only recourse to them is as unsecured creditors.
The hedge funds had sought Securities Investor Protection Act for the soft dollars, which were used to buy research and other brokerage services from Lehman. Had the judge agreed, they would have been entitled to up to $500,000 each.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitich, CIO of Petty Endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
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.