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Hedge Funds Capitalizing on Beaten Down Mortgage Market

New York (HedgeCo.Net) – Foreclosed properties present an opportunity, to some, of finding an otherwise unattainable home at a deeply discounted rate.  For hedge funds, foreclosures could mean massive...

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Merrill, Citigroup to Buy Back $30 Billion in ARS

New York (HedgeCo.Net) – Merrill Lynch and Citigroup, two banks that have already written down billions in losses, will buy back $30 billion in auction-rate securities as part of an agreement with...

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UBS Writes Down Another Subprime-Related $6 Billion

New York (HedgeCo.Net) – Writedowns from major banks have reached the $500 billion mark, only one year after the subprime fallout forced mortgage-backed securities to plummet in value.  And it’s not...

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Cuomo Pressing Major Banks in ARS Probe

New York (HedgeCo.Net) – Less than one week after UBS and Citigroup were called upon to buy back over $30 billion in bad auction-rate securities, New York Attorney General Andrew Cuomo is forcing...

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Swing back to bank stocks is overdone, says Merrill Lynch

Times Online – The fashionable investment tactic of the past month – buying bank stocks while selling energy companies – could already have gone too far, Merrill Lynch, the financial management group,...

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Lehman May Put a Prized Unit on the Block

The Ledger – Lehman Brothers, the troubled investment bank, is considering the sale of all or part of its prized money management division to private equity firms to raise billions of dollars of...

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Temasek may invest more in Western banks

Reuters – Singapore sovereign wealth fund Temasek Holdings, which has pumped billions of dollars into ailing lenders such as Merrill Lynch, said it may invest more in Western banks if the opportunity...

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Hedge Fund Fires Back at Delphi, Seeks Damages

New York (HedgeCo.Net) – As if trying to secure $6.1 billion in financing to exit bankruptcy isn’t enough of a headache, now Delphi has to deal with counterclaims by hedge fund Appaloosa Management who...

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Merrill Pushing Bad Debt for Petty Prices

New York (HedgeCo.Net) – Merrill Lynch is still hoping to strike a deal in which Korea Asset Management Corp. would purchase a significant amount of their bad debt.  Talks have been stagnant because of...

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Hedge Fund Man Group Hires New Middle East CEO

West Palm Beach (HedgeCo.net) – The CEO of Man Group, Peter Clarke, announced the appointment of the new CEO of the Middle East arm as Patrick Merville, to take effect from 1 October, following the...

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Lehman, UBS Among Firms Involved in Tax Dodge, U.S. Probe Says

Bloomberg – Lehman Brothers Holdings Inc., UBS AG and Merrill Lynch & Co. are among Wall Street firms that concocted derivatives and stock-loan deals to help offshore hedge funds dodge hundreds of...

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Probe Says: IRS, Major Banks Helped Offshore Hedge Funds Avoid Billions in Taxes

New York (HedgeCo.Net) – A year-long probe launched by a U.S. Senate Committee has discovered that numerous Wall Street banks have assisted offshore hedge funds in evading millions of dollars in U.S....

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Lehman Declares Largest Bankruptcy Filing in History

New York (HedgeCo.Net) – Despite valiant efforts to find investors and stay afloat the credit crisis, Lehman Brothers Holdings Inc. is now at the center of the biggest bankruptcy filing in history. The...

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Oil loses appeal as hedge against risk

Globe and Mail – Once viewed as a safe haven, crude oil has lost its lustre as investors bet that the crisis in financial markets will hurt an already weakened global economy and drive down petroleum...

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Hedge fund Citadel hires two from Merrill Lynch

Reuters – Hedge fund firm Citadel Investment Group said on Tuesday it had hired two senior sales executives from Merrill Lynch, the investment bank that is being sold to Bank of America  for $50...

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Equity and Hedge Funds may take Wall Street’s Place

New York Post – With just two large investment banks remaining – Morgan Stanley and Goldman Sachs – questions are growing over who might step into the suddenly emptier playing field. Many Wall Street...

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Hopes and fears mix at hedge fund conference

Reuters UK – "Does anyone know what is happening with the markets?" former U.S. Treasury Secretary Lawrence Summers asked after stepping out of his car and into a hedge fund industry conference in...

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Fed Reverses Stance on AIG, Provides Rescue

New York (HedgeCo.Net) – Just one day after reaffirming their stance they would not rescue America International Group Inc., the Fed has agreed to lend the collapsing insurer $85 billion in exchange...

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Trailblazer Fink returns to head £200m hedge fund

The Independent – Stanley Fink, the so-called godfather of UK hedge funds, has made a dramatic return to the industry after retiring from Man Group, the largest alternatives manager in the world, only...

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Hedge funds batten down the hatches in turbulence

Reuters – Hedge funds are keeping borrowings and risk low and seeking sanctuary in safe-haven assets during the current market turbulence, but some are beginning to see opportunities to make attractive...

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