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Mr. Diller said that a rumored swap transaction with majority shareholder Liberty probably will not take place as part of plans to split IAC into five separate companies.
"We are overjoyed," said Andrea Hermesmeier, general counsel for the city of Pforzheim in southern Germany, which is suing JPMorgan Chase in a Frankfurt court for some 57 million euros in losses from a swap transaction.
On March 22nd the Federal Court of Justice in Karlsruhe ordered Deutsche Bank to pay €541,074 ($768,942) damages, plus interest, for failing to advise a middle-size client on the true risk of a complex swap transaction.
If SAC had sold its swaps, it would have had to notify the Wall Street bank that it entered into the swap transaction with and, in turn, the bank's trader would have most likely sold the shares on the open market.
It wants the judge in the case to block Detroit's settlement with the other participants in the swap transaction, UBS and Merrill Lynch — the only out-of-court settlement the city managed to reach with its creditors before filing for bankruptcy on July 18.
During a swap transaction, the market practitioner conducts a simultaneous "sale" and "purchase" of two sequences of cash flows generated by two different securities.
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For instance, dealers now have to report swap transactions to regulators.
It also said it would conduct foreign exchange swap transactions to create liquidity in Swiss francs.
In Europe, Cable and Wireless and KPNQwest have been criticized for using swap transactions.
The bank also announced that it would conduct foreign exchange swap transactions to create liquidity in Swiss francs.
Mr. Staley notes the one set of clients that aren't interested in interest rate swap transactions: municipal governments.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com