Tuesday, May 14, 2013

Fraud claims versus Goldman over Abacus CDO dismissed



Reuters reports that Goldman Sachs won dismissal on Tuesday of fraud claims brought by a bond insurer over a CDO tied to subprime mortgage securities called Abacus.

In a 3-2 decision, a New York state appeals court dismissed a complaint by ACA Financial Guaranty Corp accusing Goldman of fraudulently inducing the company to insure the CDO, or collateralized debt obligation.  ACA Financial claimed Goldman deceived it into believing Paulson & Co, a hedge fund, was a long investor in the Abacus CDO, when it knew Paulson would take a short position…

No comments:

Post a Comment