Daily News: October 25, 2013

Reuters: Barclays Found Liable in $300MM Black Diamond Capital Dispute

Reuters reported that a divided New York state appeals court ruled on Thursday that Barclays Plc breached a derivative agreement with a Black Diamond Capital Management unit and must return an estimated $297 million in collateral to the hedge fund.

Reuters said further that the fund’s BDC Finance filed a lawsuit against the bank in 2008, claiming Barclays had defaulted on a $40 million collateral call made at the height of the financial crisis, although Barclays said it only owed $5 million, which it remitted to Black Diamond two days after the call was made.

To read the entire Reuters article, click here.