Hedge Fund Asks 2nd Circ. To Revive SunTrust MBS Suit

Law360, Los Angeles (August 12, 2013, 6:43 PM EDT) -- Turnberry Capital Management LP asked the Second Circuit on Friday to reinstate its Financial Industry Regulatory Authority arbitration proceeding against SunTrust Banks Inc. in a mortgage-backed securities dispute, arguing that a federal judge's interpretation of FINRA rules was too narrow.

Turnberry, which purchased the SunTrust-issued mortgage-backed securities from broker Raymond James & Associates Inc. in June 2007, argued that FINRA supports a broad definition of “customer” that would include the hedge fund.

U.S. District Judge Naomi Reice Buchwald ruled in May that Turnberry couldn't force SunTrust...
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