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ATLANTA -- A Financial Industry Regulatory Authority (FINRA) arbitration panel awarded more than $3.4 million to Racetrac Petroleum after the company invested in the Bear Stearns hedge funds that imploded in 2007, according to Hedgefund.net.
Convenience store operator Racetrac was seeking $5 million for its investment, as well as treble damages against Bear Stearns, but those claims were denied, the report stated.
The two Bear Stearns funds that went into bankruptcy were heavily leveraged and invested in securities that packaged subprime mortgages, and those securities were the first to get into trouble as homeowners defaulted, Hedgefund.net reported.
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