Goldman, Others Hid MF Global's Doomed Debt Bets: Suit

Law360, New York (November 21, 2011, 3:47 PM EST) -- Groups of MF Global Holdings Ltd. investors launched a proposed class action Friday against Goldman Sachs & Co. and six other banks that helped the bankrupt brokerage market its bonds, saying they helped hide the firm's ruinous exposure to European sovereign debt.

In a complaint filed in New York federal court, a pair of pension funds claimed MF Global's securities traded at artificially high levels because of the defendant's misstatements and omissions before plummeting when regulators forced the brokerage to reveal its dire financial outlook....
To view the full article, register now.