Securities Trade Group Backs Goldman In Bayou Suit

Law360, New York (August 5, 2010, 7:14 PM EDT) -- A Wall Street trade association on Thursday backed a move by Goldman Sachs Group Inc. to kill a $20.6 million arbitration award granted to unsecured creditors of now-defunct hedge fund Bayou Group LLC.

The industry group, the Securities Industry and Financial Markets Association, filed a brief in support of Goldman in its case against the Bayou creditors in the U.S. District Court for the Southern District of New York, saying the award could affect the entire securities industry, especially clearing brokers.

The arbitration award, granted by...
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