Friday, 19 September 2014
Last updated 15 hours ago
Jan 27 2014 | 1:05pm ET
Goldman Sachs will have to face all of the investors in a pair of collateralized debt obligations at once, a federal judge has ruled.
U.S. District Judge Victor Marrero in Manhattan last week rejected Goldman's bid to block class-action status for the lawsuit, which is led by hedge fund Dodona I. The judge said that Goldman failed to show that "difference in this proceeding distinguish the proposed class from any other securities class action." In addition, barring a class-action would "risk disparate results" and would be "a particularly inefficient use of judicial resources."
Dodona alleges that Goldman misled investors in the Hudson Mezzanine CDOs. The hedge fund accuses the bank of creating the instruments knowing that the subprime mortgages behind them were in trouble, to reduce its own risk.
Goldman, which has denied any wrongdoing, had complained that "the proposed class is rife with differences, idiosyncracies and conflicts," and that each claim against the bank should "be asserted independently."
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.