Not quite what you might expect from an FT Alphaville post, but the following report from the LA Times on the imminent closure of Philadelphia’s libraries illustrates some of the oft-overlooked human consequences of the fiscal crises faced by many US states and municipalities (see, for instance California and Jefferson County, Alabama).
From the report by the LA Times Jacket Copy blog: Read more
A Canadian hedge fund manager ordered to pay almost $300m in compensation and fines after defrauding investors is unlikely to pay more than has already been recovered, said lawyers for the receiver of the failed fund. A US judge ordered Paul Eustace, 43, to pay $279m to compensate investors in Philadelphia Alternative Asset Management’s four failed funds for losses while fining him and his company $20.8m. But the receiver believes the $180m already recovered – including legal settlements of $19m from UBS and $75m from MF Global, the former brokerage arm of the UK’s Man Group – is unlikely to change significantly. The settlement closes a three-year legal battle between Eustace and the Commodities Futures Trading Commission, which shut the fund in 2005 and froze its remaining assets.