New York –
Get your hankies ready: Hedge funds feel they’re the newest victims.
A long-simmering issue may soon come to a boil, potentially putting Wall Street’s largest firms on the hook for billions more in liabilities years after the research scandal that extracted $1.4 billion in legal fines from ten of the most influential investment banks.
This time, prime brokers face scrutiny for the fees they charge hedge fund clients, with securities lending being a particular focus.
Attorneys at plaintiffs’ firm Milberg, Weiss, Bershad & Schulmanare investigating securities lending fees and other practices by the biggest prime brokers and are considering bringing a class-action lawsuit on behalf of hedge funds.
