NEW YORK (Reuters) - Goldman Sachs Group Inc must defend fraud claims brought by a bond insurance company over its notorious Abacus mortgage product deal, a New York state judge ruled, but she decided that the investment bank did not unjustly enrich itself.
NEW YORK (Reuters) - Goldman Sachs Group Inc must defend fraud claims brought by a bond insurance company over its notorious Abacus mortgage product deal, a New York state judge ruled, but she decided that the investment bank did not unjustly enrich itself. In a lawsuit last year, ACA Financial Guaranty Corp accused Wall Street's most influential investment bank of financially inducing it to provide insurance for Abacus 2007-ACI - a synthetic collateralized debt obligation (CDO). Goldman settled with the top U.S. ...
NEW YORK (Reuters) - Fabrice Tourre, the former Goldman Sachs trader accused of secretly helping the hedge fund of billionaire John Paulson construct a $2 billion deal it could bet against in 2007, is set to testify Wednesday in his civil fraud trial.
NEW YORK (Reuters) - A New York appeals court dismissed a case against Goldman Sachs Group Inc brought by a bond insurer who claimed it was fraudulently induced to insure the bank's Abacus product tied to subprime mortgages.
Jake Zamansky submits:The SEC deserved a lot of credit for filing the case against Goldman Sachs (GS) for its dubious creation of the ABACUS CDO transaction. To recall, Goldman created the ABACUS deal so that a hedge fund manager could short the mortgage market, and then sold the securities to an unsuspecting client without disclosing the investment was built to fail.
Suna Reyent submits: I have stated in an earlier article my belief that SEC has a very strong case. I also believe that the Goldman Sachs (GS) defense I’ve read thus far is inadequate. So what is wrong with the Goldman defense?
Nicholas Waltner submits:I have been a big fan of Michael Lewis ever since I listened to that Monday morning, firm-wide sales call in November of 1989, in which the senior management of Salomon Brothers did its very best to downplay the veracity of Michael Lewis’s depiction of the firm’s “big swinging dick” culture in his newly published book, Liar’s Poker. However, during Tuesday night’s Charlie Rose Show, I could not believe what I was hearing come out of M
Avery Goodman submits: The SEC’s recent charges against Goldman Sachs (GS) involve something known as a collateralized debt obligation (heretofore referred to as “CDO”), which is a derivative instrument whose value is determined (or "derived") from the value of something else. Most CDOs are essentially investment funds, and their investments are generally chosen by their promotors and creators.