Law, Strategy, and Risk in Commercial Disputes
The Second Circuit today came out with rulings in two big commercial cases.
The first involved a "collateralized debt obligation", the second a cartel that the plaintiffs alleged fixed prices for "publication paper". Plaintiffs won both times.
The CDO case stemmed from a $60 million purchase in December 2006 by a German bank, Bayerische…
Scene: An office near Ground Zero. Way up high. Perhaps in 40 Wall Street. Which has that awesome Duane Reade store on the ground floor. Some place posh in the area no matter what.
Snappy: Did you know, Bitey, that people could insure themselves against risks they Do Not Have?
Bitey: When, in the course…
Warren Buffett once called credit default swaps "financial weapons of mass destruction" — and later bought a mess of them.
Why would the Oracle of Omaha turn such a seeming hypocrite?
He didn't. Not really. When he got CDSs, he did it to protect himself against possible losses on actual investments he'd made. A CDS, you…