Derivatives and Credit Default Swaps Litigation & Restructuring Team

Lawyers from across our US and European offices represent clients on a wide range of derivatives and swaps litigation and arbitrations.  Our clients have been “buy side” end users including insurance companies, pension funds and a variety of other US and foreign derivatives and swaps purchasers.  The securities involved have included asset-backed securities such as collateralized debt obligations and a wide variety of derivatives, including options, interest rate derivatives, total return swaps and credit default swaps.  We also represent derivatives and swaps buyers in securing return of their collateral in bankruptcies of counterparties and derivatives dealers. 

Listed below is a sampling of recent matters handled by attorneys in the Derivatives and Credit Default Swaps Team:

  • Steptoe attorneys have represented the Republic of Korea and three of the country’s financial agencies in investor disputes with a large investment bank and derivatives dealer over failed derivative transactions.
  • Steptoe attorneys have represented a Korean insurance company and a Korean investment firm in disputes over failed derivative transactions.
  • Steptoe attorneys have represented an insurance company prosecuting a breach of contract claim arising out of a series of total return swaps with a bank counterparty.
  • Our attorneys are representing an EU insurer in a dispute with an investment bank regarding the Bankruptcy termination provisions of the ISDA Master Agreement.
  • Steptoe attorneys have counseled an affiliate of an insurance carrier concerning potential exposure on a credit risk policy insuring over one hundred million dollars in securitized mortgage obligations.  These obligations were issued through a complex series of trusts and were ultimately secured by a pool of loans made to nursing home properties around the country.  The team was able to structure a workout resolving the matter without litigation.
  • Steptoe attorneys have represented a broker dealer in connection with litigation filed by several school districts over the sale of synthetic collateralized debt obligations (CDOs) designed to address certain funding issues.
  • Steptoe attorneys have represented a hedge fund investment manager in connection with the liquidation and dissolution of several funds composed of highly rated residential and commercial mortgage-backed and other asset-backed securities.
  • Steptoe attorneys represented a partially owned subsidiary of an insurance client in a workout of reinsured financial guarantees issued by monoline carriers on credit default swaps, derivative securities exposures and litigation, including loss and trust funding exposures.
  • Steptoe attorneys have litigated derivative issues involving investment advisers.
  • Steptoe attorneys have represented reinsurance companies and mutual funds in exposures arising from insurance of credit default swap obligations of swap sellers and securities litigation arising from losing derivative securities investments.
  • Steptoe attorneys have represented an accountant in New York in connection with a federal criminal investigation into the accuracy of financial data provided in support of a series of high value mortgage originations.
  • Steptoe attorneys are representing a Korean investor holding credit default swaps seeking a return of its capital in the Lehman Brothers bankruptcy.
  • We have also have been working with clients to protect their notes issued and guaranteed by the Lehman family of bankrupt entities, both domestically and internationally.
  • Our attorneys are representing an employee-owned wealth management, capital markets, asset management and private equity firm, to liquidate its collateral in the case of a bankrupt subprime mortgage lender and servicer. 

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