Wachovia Unit Tells 2nd Circ. It Need Not Arbitrate

Law360, New York (May 24, 2011, 3:03 PM EDT) -- Wachovia Capital Markets LLC shouldn't have to arbitrate a dispute over a $9 million credit default swap with a hedge fund because the fund was only a customer of Wachovia Bank NA, an attorney told a Second Circuit panel Tuesday.

WCM, which normally acts as a broker-dealer, only provided the hedge fund, Vanquish Capital Group LLC affiliate VCG Special Opportunities Master Fund Ltd., with pricing information, and the contract between VCG and the bank explicitly said WCM wasn't acting as a broker, Shawn Patrick Regan of...
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