Citibank Prevails In Fund's Suit Over Credit Swap

Law360, New York (November 6, 2008, 12:00 AM EST) -- Citibank NA did not force the hedge fund VCG Special Opportunities Master Fund Ltd. to pay additional collateral as part of their credit default swap agreement, a district court judge has ruled, entering a judgment in the bank's favor.

VCG had claimed that Citibank improperly demanded and took $9.96 million of collateral for a $10 million swap that it purchased from the Isle of Jersey, U.K.-based hedge fund.

Specifically, the parties disagreed on whether Citibank properly declared that a "floating amount event" had occurred. Under their...
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