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Scandals fraud and losses in the financial markets

Scandals fraud and losses in the financial markets

HSBC is the latest bank to be hit by attempted fraud, which Euromoney was first to report.

Country risk index

Country risk index

Bi-annual survey monitoring political and economic stability of 185 sovereign countries

May 2008

Redemptions: Is there a cure for redemption fever?

According to press reports, Polygon Investment Partners, an $8 billion UK hedge fund, is changing its redemption system in a bid to slow investor withdrawals. The fund, which had lost 4% by the end of March, operates a first-come, first-served redemption system that limits the amount of withdrawals at any particular time. But management reportedly claims that this has resulted in investors applying to withdraw money in a bid to be first out of the gate, simply to avoid being caught last if the fund were to get into serious trouble.




As an alternative, the fund is offering investors the opportunity to move to a new class of shares that will not have a gate, say the reports.


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