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Hammersmith and Fulham, London Borough of
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A local government in the United Kingdom that was extremely active in sterling swaps between 1986 and 1989. Swap volume was very large relative to underlying debt, suggesting large scale speculation by the borough council. The speculation was unsuccessful and a local auditor ruled that the transactions were ultra vires-beyond the powers of the council. The House of Lords sitting as the High Court ultimately upheld the auditor's ruling. The 'legal' risk of some risk management contracts was established at considerable cost to the London financial community. See also Legal Risk.
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See also:
Risk Management
Glossary *
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