2nd Circ. Nixes Arbitration Bid In $9M Wachovia CDS Case

Law360, New York (October 28, 2011, 4:18 PM EDT) -- The Second Circuit on Friday ruled that an investment banking unit of Wachovia Bank NA is not required to enter into binding arbitration with a hedge fund over a $9 million credit default swap because the fund was not a customer of the unit.

A three-judge panel unanimously found that a written agreement between Wachovia Capital Markets and VCG Special Opportunities Master Fund Ltd., a subsidiary of VCG set up specifically for the CDS, specifically said that WCM was not acting as a broker and was...
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