Oppenheimer Sues CIBC Over Investment Banking Deal

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Canadian Imperial Bank of Commerce was sued by Oppenheimer Holdings over Oppenheimer’s purchase of CIBC’s investment banking businesses.

Bloomberg reports that Oppenheimer claims CIBC failed to honor an agreement to support the leveraged-finance business by making $2bn in capital available to it.

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.

Hit the link below to access the complete Bloomberg article:

Oppenheimer Sues Canadian Imperial, Claims Deal Breached

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