Citigroup Dodges Arbitration Over Swap Write-Down

Law360, New York (March 10, 2010, 7:04 PM EST) -- The U.S. Court of Appeals for the Second Circuit has affirmed a lower court's decision to grant Citigroup Global Markets Inc. a preliminary injunction blocking a Financial Industry Regulatory Authority proceeding a British hedge fund instituted against it over a credit default swap agreement.

In a ruling Wednesday the appeals court concluded that the “serious questions” standard used in the Second Circuit for considering motions for preliminary injunctions was not invalidated by recent U.S. Supreme Court rulings, as the hedge fund had alleged.

The dispute began...
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