Banking Reporter, New York
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Jun 11, 2010
Jun 11, 2010
Jun 11, 2010

Goldman’s CDO woes mean dollar signs for lawyers

NEW YORK, June 11 (Reuters) – Goldman Sachs Group Inc’s
(GS.N: Quote, Profile, Research) mounting legal and regulatory woes stemming from the
from the firm’s sale of subprime mortgage-linked securities are
turning into gold for a growing number of lawyers in New York
and Washington.

The Wall Street investment firm tapped well known
litigation specialists Boies, Schiller & Flexner to defend a
lawsuit filed June 9 by an Australian hedge fund that seeks $1
billion in damages, said people familiar with the situation,
but who declined to be identified because they were not
authorized to speak on the matter.

Jun 11, 2010

SEC presses Goldman to ‘cry uncle’

NEW YORK/MONTREAL (Reuters) – U.S. securities regulators are hunting for fresh dirt on Goldman Sachs Group Inc(GS.N: Quote, Profile, Research), hoping to bolster their lawsuit against the bank and perhaps force it to settle on terms more to the regulators’ liking.

Two months ago the Securities and Exchange Commission charged Wall Street’s most powerful bank with civil fraud in connection with a subprime mortgage-linked security. The case hinges on whether Goldman misled investors when it marketed Abacus 2007, a mortgage-linked security that turned toxic during the mortgage crisis.

Jun 10, 2010

Goldman sued by hedge fund over notorious CDO deal

NEW YORK (Reuters) – An Australian hedge fund is suing Goldman Sachs Group Inc over an investment in a subprime mortgage-linked security that contributed to the fund’s demise in 2007.

The lawsuit filed on Wednesday accuses Goldman of misrepresenting the value of the notorious Timberwolf collateralized debt obligation, which garnered a lot of attention during a recent congressional hearing.

Jun 9, 2010

Timberwolf investor suing Goldman

NEW YORK (Reuters) – An Australian hedge fund is suing Goldman Sachs Group Inc over an investment in a subprime mortgage-linked security that hastened the fund’s demise in 2007, a lawyer for the fund said.

The lawyer, Eric Lewis, said Basis Yield Alpha Fund is suing Goldman to recoup the $56 million it lost on the now notorious Timberwolf collateralized debt obligation, which garnered a lot of attention during a recent congressional hearing.

Jun 9, 2010

Goldman unlikely to settle Timberwolf: source

NEW YORK (Reuters) – Goldman Sachs Group Inc (GS.N: Quote, Profile, Research) may be looking at new legal headache, as settlement talks with an Australian hedge fund that invested $100 million in a now toxic mortgage-linked security appear to be breaking down, a source said.

Lawyers working for the Basis Yield Alpha Fund could file a lawsuit against Goldman over the transaction — called Timberwolf — as early as Wednesday, said a person familiar with the situation.

Jun 8, 2010

Goldman subpoenaed by financial crisis commission

NEW YORK (Reuters) – Goldman Sachs Group’s U.S. government ties suffered a fresh blow on Monday, as a commission probing the financial crisis subpoenaed the bank, claiming the firm had flooded the panel with 2.5 billion pages of records.

The Financial Crisis Inquiry Commission had asked Goldman to provide documents and grant interviews in connection with the panel’s probe.

Jun 7, 2010

U.S. commission serves Goldman with subpoena

NEW YORK (Reuters) – A government commission investigating the financial crisis has issued a subpoena to Goldman Sachs Group Inc for failing to comply with a request for documents and interviews in a timely manner, the commission said on Monday.

The documents and interviews were requested in connection with the probe by the Financial Crisis Inquiry Commission, which has been holding hearings to question financial executives and regulators about the events that led to the government rescue of the banking industry.

Jun 7, 2010

Commission serves Goldman with subpoena

NEW YORK (Reuters) – A government commission investigating the financial crisis has issued a subpoena to Goldman Sachs Group Inc for failing to comply with a request for documents and interviews in a timely manner, the commission said on Monday.

The documents and interviews were requested in connection with the probe by the Financial Crisis Inquiry Commission, which has been holding hearings to question financial executives and regulators about the events that led to the government rescue of the banking industry.

    • About Steve

      "Steve Eder, based in New York, covers investment banks for Reuters. He came to Reuters in May, 2009, after working as an investigative reporter for the Toledo Blade newspaper in Ohio. Eder has written about plant closings, the health insurance industry, poverty, and public corruption, helping to expose Ohio's 'Coingate' scandal. He also completed assignments to India and South Korea. Since joining Reuters, Eder has written about the aftermath of the financial crisis, Goldman Sachs and the debate over Wall Street bonuses."
      Hometown:
      Detroit
      Joined Reuters:
      May, 2009
      Awards:
      Loeb Award, 2006
      Finalist, Pulitzer Prize for Public Service, 2006
      National Headliner Award, 2006
      Finalist, IRE Award, 2006 and 2008
      Best Ohio Reporter, Cleveland Press Club, 2009
      Finalist, Livingston Award, 2009 and 2010
      Reuters Company News Story of the Year, 2009
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