Prime Broker Must Return Margin Payments

Law360, New York (March 20, 2007, 12:00 AM EDT) -- The United States Bankruptcy Court for the Southern District of New York (Bankruptcy Court) recently issued a significant decision for securities firms and, in particular, for prime brokers. See Gredd v. Bear, Stearns Secs. Corp. (In re Manhattan Inv. Fund Ltd.), __ B.R. __, Adv. Pro. No. 01-2606, 2007 WL 60843 (Bankr. S.D.N.Y. Jan. 9, 2007).

In that decision, the bankruptcy court held Bear, Stearns Securities Corp. liable to return, to the bankruptcy estate of a hedge fund that had engaged in a ponzi scheme, more...
To view the full article, register now.

UK Financial Services

UK Financial Services

Read Our Latest UK Financial Services Coverage

Financial Services Law360 UK provides breaking news and analysis on the financial sector. Coverage includes UK and European Union policy, enforcement, and litigation involving banks, asset management firms, and other financial services organizations.