Korea Life Insurance v. Morgan Guaranty Trust Co. of New York

OPINION AND ORDER GRANTING SUMMARY JUDGMENT TO DEFENDANT, DISMISSING COUNTS ONE, TWO, THREE, FIVE, AND SIX; AND GRANTING SUMMARY JUDGMENT TO PLAINTIFFS ON COUNT FOUR

HELLERSTEIN, District Judge.

This is a case of disappointed expectations. It involves forward, one-year contracts in foreign currencies, elaborate hedges, and a substantial, unhedged risk of depreciation of one of the currencies, the Thai baht. The real parties in interest are a Korean life insurance company-the oldest and third largest in Korea-and a major investment bank. The transactions they made were filtered through their…