Detroit Pension Fund Loses $40M Claim Over CDOs

Law360, New York (September 20, 2013, 4:54 PM EDT) -- An arbitration panel on Wednesday struck down a $40 million claim brought by the pension fund for Detroit's police and firefighters against Citigroup Global Markets Inc. and Morgan Stanley brokers, finding that the banks didn't mislead the fund about investing in certain derivatives.

The Police and Fire Retirement System of the City of Detroit lost its claims over certain collateralized debt obligations, according to documents filed Wednesday with the Financial Industry Regulatory Authority. The fund had accused the banks of misrepresenting the nature of the CDOs...
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