Publications

The Wrong Way to Dispute a Collateral Call: Key Lessons from VCG vs. Citibank – Teigland-Hunt LLP Client Alert

Dec 18, 2008

In a recent decision providing important reminders for participants in the OTC derivatives markets, a New York federal district court judge ruled in favor of Citibank in a case brought by one of its hedge fund clients. Notably the judge ruled that VCG Special Opportunities Fund Limited (“VCG”) had, by its conduct, effectively waived its right to claim that Citibank wrongfully demanded additional collateral in respect of a credit default swap.

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