UBS, Merrill Lynch Sued Over Detroit Pension Swap Contracts

Law360, New York (July 25, 2013, 6:49 PM EDT) -- Syncora Guarantee Inc. on Wednesday urged a New York state judge to stop Detroit from axing pension interest rate swap contracts with UBS AG, arguing that allowing the bankrupt city to terminate the agreements without consent would wrongfully expose Syncora to significant liability.

The complaint comes just one week after Detroit initiated the nation's largest-ever Chapter 9 case and amid mounting concern for the fate of the city's obligations to its retirees. At issue in Syncora's suit is an agreement inked July 15 that will allow...
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