Oppenheimer incurred $176m in losses, it said last week in a state court complaint in Manhattan.
'CIBC abandoned what was now Oppenheimer’s leveraged-finance business, which as a direct result suffered catastrophic declines in committed transactions, revenues and ongoing relationships as well as lending volumes', Oppenheimer said.
CIBC agreed in November 2007 to sell the bulk of its New York-based investment bank to Oppenheimer as part of a move by Chief Executive Officer Gerald McCaughey to 'de-risk' the bank after taking writedowns tied to structured credit.
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