Tuesday, 23 September 2014
Last updated 5 hours ago
Oct 2 2009 | 2:34am ET
A federal judge has refused to dismiss a lawsuit filed against Bear Stearns and the managers of two collapsed hedge funds filed by Bank of America.
BofA accuses Bear and the managers of two of its hedge funds—both of whom are facing criminal fraud charges—of lying to it about the state of the hedge funds, whose assets were used to back securities structured by BofA. Federal prosecutors also allege that Cioffi and Tannin misled investors in the funds, which collapsed two years ago at the onset of the credit crisis. The failure of the High-Grade Structured Credit Fund and a more highly-levered sister fund cost investors $1.6 billion and helped lead to Bear’s own collapse the following year. Bear is now owned by JPMorgan Chase.
U.S. District Judge Kevin Castel refused a bid to dismiss the contract and fraud claims against Bear and the hedge fund managers. BofA says Bear, Cioffi and Tannin hid the hedge funds’ losses, which led to an “enormous decline” in the value of the assets backing the securities.
BofA is seeking more than $2 billion.
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.