Basis Capital, an Australian hedge fund suing Goldman Sachs for $1 billion over losses related to credit default swaps, made the deal in Australia and can’t sue in the United States, Goldman Sachs has said. Bloomberg News reports that Basis never contends it “did anything within the United States in relation to the transaction,” Goldman [...]
William Ackman’s Pershing Square Capital Management is betting against the debt of BP through credit-default swaps, saying the energy company’s creditworthiness will be dented for years by the biggest offshore oil spill in United States history. The accident has “likely permanently impaired the ability of BP to operate effectively in the U.S.,” Mr. Ackman wrote [...]
Peter J. Henning follows issues involving securities law and white-collar crime for DealBook’s White Collar Watch. The Dodd-Frank Act, which just became law, strengthens the authority of the Securities and Exchange Commission to regulate complex securities, like credit default swaps, and broadens oversight of hedge funds that control billions of dollars of assets. One provision [...]
In a few hours, Europe will show the world which of its banks would fail under certain market conditions, and which would survive. In the meantime, investors looking for clues to the outcome can scan the spread on credit default swaps for the lenders in question. Markit, a credit research firm, has released a summary [...]
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