MFA Files Amicus Brief with U.S. Court of Appeals for the Second Circuit Seeking Clarity on Rules Relating to Total Return Swaps

MFA filed an amicus brief with the United States Court of Appeals for the Second Circuit seeking clarity on rules relating to total return swaps. MFA’s amicus brief responds to the June 11, 2008 opinion by United States District Judge Lewis A. Kaplan on the CSX Corporation case against The Children’s Investment Fund Management (UK) LLP, et al. The opinion contains a number of broad statements, principally in dicta, about the applicability of rules to transactions involving total return swaps that are contrary to widespread current industry and SEC understanding of the law. MFA takes no position on the outcome of the appeal. MFA asks only that the Court of Appeals reaffirm the principles identified in the amicus brief and reject any contrary implications suggested by the district court’s opinion.