Friday, 27 March 2015
Last updated 27 min ago
Aug 9 2012 | 1:41pm ET
Aladdin Capital Management will have to defend its handling of a collapsed collateralized debt obligation, after all.
A federal appeals court in New York overturned a lower-court judge’s ruling throwing out the case against the hedge fund. The decision is a victory for Germany’s Bayerische Landesbank, which last year sued Aladdin, accusing it of misleading the bank about the mortgage-backed CDO and of recklessness in its management.
Bayerische Landesbank alleged that Aladdin had sold the CDO as investment-grade. But at least 11 underlying entities—among them Lehman Brothers, Washington Mutual and two Icelandic events—suffered credit events, and the bank’s entire US$60 million investment was lost.
But a lower court judge dismissed the case a year ago. Bayerische Landesbank appealed, and the Second Circuit Court of Appeals found that it had “plausibly alleged that Aladdin’s gross negligence exposed Bayerische to greater risk that it would lose its entire investment than would have otherwise been the case.”
Mar 9 2015 | 6:35am ET
As more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…
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…