Goldman Must Face $1B NY State Suit Over CDO Sales (Jury trial this year)

[denem]

Source: Law 360

Law360, New York (January 30, 2014, 7:00 PM ET) -- A New York state appeals court on Thursday unanimously upheld a New York state judge's 2012 decision to largely preserve a $1 billion suit over collateralized debt obligation-related securities Goldman Sachs Group Inc. sold to a client in 2007 before allegedly betting against them.

(subscription site)

Read more: http://www.law360.com/articles/505591/goldman-must-face-1b-ny-state-suit-over-cdo-sales

---

This is the one where they got caught with the most toxic of toxic CDOs

In a case launched in 2010, Basis Yield Alpha Fund is claiming the Wall Street giant engaged in fraud when it sold sub-prime securities it knew were junk in 2007, and then bet against the assets when the global financial crisis hit.

‘‘We welcome the appellate court’s 5-0 decision and we look forward to putting our fraud claim to a jury once discovery has been completed later this year,’’ Basis managing director Nick Reeves said.

At the centre of the case are two collateralised debt obligations (CDOs) sold by Goldman, known as Timberwolf and Point Pleasant. …

This is the one where they got caught with the most toxic of toxic CDOs. It’s clear that internally they knew exactly what they were selling. They constructed these to fail and fail quickly ( Thelawyer representing Basis, Lewis Baach partner Eric Lewis said

http://www.smh.com.au/business/court-dismisses-goldman-sachs-hedge-fund-appeal-20140131-31rtc.html

[SunSeeker]

1. Finally. Get these bastards in front of a JURY! nt

[nikto]

2. Better than nothing, but really...

This is as probably as threatening to Sachs
as a 25-cent parking ticket.

[denem]

4. Nothing? Um no. The discovery phase is something Goldman do not want at all.

The DOJ did not settle possible criminal action. Holder supposedly shelved it for lack of evidence.

[nikto]

3. make it $150 Billion and you'll get their attention

Then it'll be like a $50 ticket.

[denem]

5. Make it criminal and ...

… know what I mean. Discovery is discovery, and the plaintiffs have an email or three.

[AtheistCrusader]

6. I was going to say, 'add two zeroes' and some criminal charges.

I like 150 better.

[nikto]

11. Drawing and quartering would also be appropriate

It was such a crowd-pleaser back in the day.

[TexasTowelie]

7. Four threads in a row in LBN about Goldman Suchs.

Please denem, please please please tell us how you really feel.

[denem]

8. Yep, because all this Goldman Shite happened on the same day.

A.Big.Day.For.Goldman

After all, this is Our very own Gilded Age isnt i't?

If you know that Libya is about to sue you, and the court will rule on the first case about CDOs that may go to trial, it takes some kind of special hubris to announce the CEOs bonus on that day, But that's the law I guess. If Goldman brings down a foreign government, well, I'd say that was news too.

[Wilms]

9. .

[Demeter]

10. I think I finally got my Xmas present!

Thanks for the glad tidings of great joy!

[Scuba]

12. Oh boy, somebody's going to pay for this ..

Pensioneers, no doubt ....



Goldman Said to Boost CEO’s Bonus 11% to $21 Million


http://www.bloomberg.com/news/2014-01-30/goldman-increases-blankfein-s-stock-bonus-11-to-14-7-million.html