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[Abacus] Goldman faces new CDO case

Posted by Joseph Cotterill on Jun 09 17:15.

Add this one to the many legal risks of Goldman Sachs.

It looks like the bank’s bid to reach a settlement with the Australian hedge fund Basis Yield Alpha over the so-called Timberwolf CDO hasn’t worked — as was indicated.

They’re suing.

Flashes, via Reuters:

RTRS-AUSTRALIAN HEDGE FUND TO SUE GOLDMAN SACHS INC OVER SALE OF TIMBERWOLF CDO-LAWYER

RTRS-BASIS YIELD ALPHA FUND CLAIMS GOLDMAN MISREPRESENTED VALUE OF MORTGAGE-LINKED SECURITY AND DID NOT DISCLOSE THAT ITS TRADERS HELPED PICK UNDERLYING SECURITIES-COMPLAINT

RTRS-BASIS SEEKS $56 MILLION IN COMPENSATORY DAMAGES, PLUS $1 BILLION PUNITIVE DAMAGES-COMPLAINT

Goldman’s statement, also flashed via Reuters:

RTRS-GOLDMAN SACHS GROUP INC SAYS BASIS LAWSUIT “A MISGUIDED ATTEMPT” TO SHIFT LOSSES TO GOLDMAN

RTRS-GOLDMAN SACHS GROUP INC SAYS BASIS SPECIFICALLY STATED IT WOULD NOT PLACE ANY RELIANCE ON GOLDMAN WHEN IT SIGNED TIMBERWOLF TRANSACTION

RTRS-GOLDMAN SACHS GROUP INC SAYS LAWSUIT IS WITHOUT MERIT AND GOLDMAN HAD SUBSTANTIAL EXPOSURE TO TIMBERWOLF SECURITIES AND LOST SEVERAL HUNDRED MILLION DOLLARS

Shades of Abacus? Just a tad.

Here we go again.

Article Series - Abacus

  1. SEC charges Goldman Sachs with subprime fraud
  2. The case involving ABACUS 2007-AC1
  3. Markets Live transcript - Goldman/SEC special - 16 Apr 2010
  4. Formerly The Greatest Trade Ever
  5. Paulson: 'It's our money now'
  6. SEC/Goldman linkfest
  7. Introducing Fabrice "fabulous Fab" Tourre
  8. 'Goldman Sachs is disappointed...'
  9. This CDO is a Democrat
  10. ACA's rather disastrous CDO forays
  11. The analysts react
  12. A Goldman blogger round-up
  13. A CDO litigation risk league table
  14. Fisking Goldman's latest rebuttal
  15. The Goldman defence documents
  16. Fabrice Tourre scores an indefinite paid holiday
  17. Der Abakus
  18. Is this the sound of a bandwagon?
  19. The experience of Laura Schwartz
  20. Fabrice Tourre goes underground
  21. The exemplary Magnetar CDOs
  22. Dear Paulson investor...
  23. Appearing soon in the Senate - fabulous Fab (updated)
  24. In defence of Goldman Sachs
  25. For RBS, a routine deal became an $840m mistake
  26. The prospectus
  27. More Goldman voyeurism
  28. Tail risk in the Rhineland
  29. The running order in Room 106
  30. 'My name is Fabrice Tourre'
  31. Live, from Room 106
  32. Goldman in DC: A blogger round-up
  33. Call the cops
  34. Understated Research Headline of the Year, Part II
  35. Goldman TV
  36. Fitch revises Goldman to outlook negative
  37. The many legal risks of Goldman
  38. Goldman faces new CDO case
  39. Goldman's shares hit 52-week low

This entry was posted by Joseph Cotterill on Wednesday, June 9th, 2010 at 17:15 and is filed under Capital markets. Tagged with , , , . Edit this entry.

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