Swap Agreements: The who, what, where, when and why of litigating a swap case


Swap agreements are derivative products sold by many financial institutions. The purpose of a swap agreement is to protect the purchaser from fluctuations in the market – be that interest rates, commodities, or currencies. The basics of litigating a case involving swap agreements are essentially the same as those underlying a breach of contract or a fiduciary duty action. When interest rates severely dropped especially after the September 11th tragedy, many lawsuits were filed related to interest rate swaps. While many types of financial institutions offer swap agreements, this article focuses on those offered by banks.

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