Hedge funds on Wall Street are legally purchasing claims that insurance companies may file against Southern California Edison if found liable for the Eaton fire that devastated Altadena. This practice has raised alarms among California state officials, who are concerned about the moral implications of profiting from such tragedies, especially given the fire's significant toll of 18 lives lost and destruction of over 9,400 structures. These hedge funds are willing to pay for subrogation claims, betting that they can reap larger returns if Edison is found liable, which could affect the state's wildfire fund payouts.
Wall Street hedge funds are legally offering to buy subrogation claims from insurers against Edison in the wake of the devastating Eaton fire, raising alarm among state officials.
While it’s a legal practice, California officials worry that hedge fund investors profiting from the Eaton fire disaster, which harmed many victims, raises ethical concerns.
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