A group of Wall Street banks will face trial in a Texas state court over the collapsed $19bn Clear Channel buy-out after they failed to convince a federal court to take up the case. The ruling marks a setback for the banks, led by Citigroup, who are concerned about a hostile court reception in Clear Channel’s home state, and also about the state’s history of granting large awards in similar cases. A $600m break-up fee hangs in balance in the legal battle.
