A case against a hedge fund, and one of its partners and in-house counsel, related to actions at a portfolio company and alleging breach of fiduciary duties survived a motion to dismiss. The portfolio company, alleged to be insolvent, was a credit derivative product company that had a subsidiary that wrote credit default swaps.
USA, Capital Markets, Derivatives, Insolvency & Restructuring, Litigation, Stinson LLP, Breach of contract, Fiduciary, Hedge funds, Credit derivative
The CFTC has confirmed that its Division of Enforcement is investigating MF Global, Inc. for possible violations of the Commodity Exchange Act, or CEA and/or CFTC regulations. Scott D. O’Malia, a CFTC Commissioner, stated certain Dodd-Frank rules should be reexamined in light of the MF Global bankruptcy.
USA, Derivatives, Insolvency & Restructuring, Stinson LLP, Bankruptcy, Clearing (finance), Collateral (finance), Swap (finance), Capital requirement, Diversification (finance), Commodity Futures Trading Commission (USA), Dodd-Frank Wall Street Reform and Consumer Protection Act 2010 (USA), Commodity Exchange Act 1936 (USA), Trustee