Citibank Due $268M From Morgan Stanley Over CDS: 2nd Circ.

Law360, New York (October 2, 2012, 5:23 PM EDT) -- The Second Circuit on Tuesday upheld a ruling which directed Morgan Stanley & Co. International PLC to pay Citibank NA $268 million stemming from a deal over a credit default swap, finding the lower court correctly sided with Citibank on contract and reformation claims.

In a brief, four-page summary order, a three-judge panel for the Second Circuit held that the district court correctly found that the contract in question unambiguously allowed Citibank to liquidate the collateral without Morgan Stanley's approval.

The contract at issue is a...
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