Goldman loses $20.6 million appeal

Goldman Sachs lost an appeal on Tuesday against a $20.6 million arbitration award won by creditors of bankrupt hedge fund Bayou Group, yahoo reports.  Goldman had argued the arbitration panel disregarded the law in handing Bayou investors a win, an argument rejected by the 2nd U.S. Circuit Court of Appeals.

"The manifest disregard standard is, by design, exceedingly difficult to satisfy, and Goldman has not satisfied it in this case," a three-judge panel of the appeals court said.

The appeal had been closely watched by Wall Street firms, who worried that upholding the decision could raise the legal standards placed on clearing brokers such as Goldman….

Go figure.  Read more at http://finance.yahoo.com/news/goldman-sachs-loses-appeal-20-224936713.html