Cantor Seeks New Deal on UBS Hedge Fund Unit Over First Brands Exposure

Cantor Seeks New Deal on UBS Hedge Fund Unit Over First Brands Exposure

Cantor Fitzgerald LP is seeking to change the terms of its purchase of the O’Connor hedge-fund unit from UBS Group AG as the business faces big losses from the bankruptcy of First Brands Group, according to people familiar with the matter.

First Brands Group’s bankruptcy and the dangers of improper trade finance accounting

First Brands Group’s bankruptcy highlighted the failure of US accounting standards to adequately disclose off-balance sheet financing, revealing billions in hidden liabilities. Despite reforms from the Financial Accounting Standards Board (FASB) requiring better transparency, companies like First Brands can still evade full disclosure, raising concerns about the true extent of their borrowing. The collapse of First Brands has had wide-reaching i…

When the Brakes Fail: UBS and the Collapse of First Brands

It is the biggest U.S. corporate default in years — and, so far, only one global bank is caught in its wake. finews.com reveals how UBS Asset Management promoted its working-capital funds to professional investors, marketing that now sits uneasily beside the bank’s outsized exposure to the collapse of First Brands Group.