SunTrust Avoids FINRA Arbitration Concerning The Sale of RMBS

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On May 16, Judge Naomi Reice Buchwald of the United States District Court for the Southern District of New York granted a permanent injunction against hedge fund Turnberry Capital Management LP (Turnberry) in its attempt to compel a FINRA proceeding against SunTrust Banks Inc. (SunTrust). Judge Buchwald held that because Turnberry did not purchase the RMBS at issue from SunTrust, it was not a customer of the SunTrust unit that underwrote the securities and therefore could not compel SunTrust to arbitrate. Turnberry had purchased the securities at issue from the brokerage firm Raymond James & Associates, Inc. Decision.

Topics:  Arbitration, FINRA, RMBS, SunTrust

Published In: Alternative Dispute Resolution (ADR) Updates, General Business Updates, Finance & Banking Updates, Securities Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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