Barclays' Bill From Black Diamond May Hit $700M

Oct 30 2013 | 1:58pm ET

The nearly $300 million in collateral Barclays must return to hedge fund Black Diamond Capital Management isn’t even the half of it—literally.

Last week's court ruling, which found that the bank had breached a derivatives contract with the hedge fund, leaves Barclays liable to pay another $300 million to $400 million in interest and legal costs, the Financial Times reports. Black Diamond plans to seek 15.6%, the default interest rate, on the collateral, which it called in 2008.

A court will determine Barclays' total payout.

A New York appeals court found last week that Barclays violated its agreement with Black Diamond when it failed to meet the $40 million collateral call. When it didn't, Black Diamond declared it in default and demanded the return of the entire collateral. Barclays said it may appeal the ruling.


In Depth

Fitch Says Alternative Asset Managers 'Stable' Despite Dry Powder

Nov 20 2014 | 9:30am ET

Ratings agency Fitch says the outlook for seven publicly traded alternative asset...

Lifestyle

Cohen Buys $101 Million Sculpture

Nov 12 2014 | 9:17am ET

Steven Cohen was the sole bidder for a rare Alberto Giacometti sculpture at Sotheby...

Guest Contributor

Why The Big Money Is Going To Europe

Nov 14 2014 | 6:03am ET

Peer-to-peer lending was invented with the individual investor in mind. But despite...

 

Sponsored Content

    For Hedge Funds, Mastering Data Is Key To Success

    Nov 4 2014 | 9:45am ET

    Data management is important to every business, but for hedge funds, it is critical. FINalternatives recently asked Peter Sanchez, CEO of Northern Trust Hedge Fund Services, how fund managers can deal with the demands of managing data while at the same time remain transparent and abide by operational best practices. Read more…

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

November 2014 Cover

Building a better market

Reg NMS created a huge bifurcation in equity markets and while much of what has followed has been positive, in terms of lower fees and greater liquidity, many traders would like to see the market come...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.