B of A, UBS Settle Derivatives Dispute With Italian Region

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

Lombardy, a region in Italy, has reached separate settlements with Bank of America's (NYSE: BAC  ) Merrill Lynch and UBS (NYSE: UBS  ) in a long-boiling dispute over derivatives tied to a $1 billion bond issue, according to a statement from the region obtained by The Motley Fool and reports from Bloomberg and Reuters. The banks had entered into a swap arrangement with the region that allowed it to repay the 2002 issue in a series of installments, as opposed to a one-time payment on maturity in 2032. The region alleged that the lenders had committed fraud in hiding their fees.

B of A and UBS brought suit in a London court against Lombardy to uphold the swap arrangement.

In its statement, the region said that, without an admission of liability from either party, it and Merrill Lynch had agreed to put aside their differences and continue their collaboration. It said neither party would comment further.

According to Reuters, the region's agreement with UBS ends the dispute. The news agency said the region did not elaborate on precisely what that entailed.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2135224, ~/Articles/ArticleHandler.aspx, 10/26/2016 9:47:28 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,089.49 -79.78 -0.44%
S&P 500 2,132.96 -10.20 -0.48%
NASD 5,254.49 -28.91 -0.55%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/26/2016 9:31 AM
BAC $16.67 Down -0.05 -0.30%
Bank of America CAPS Rating: ****
UBS $13.73 Down -0.07 -0.51%
UBS AG (USA) CAPS Rating: **