Goldman Sachs Can't Force MBS Dispute To Arbitration

Law360, New York (January 28, 2014, 7:21 PM EST) -- A New York federal judge ruled Tuesday that a credit union regulator that blames Goldman Sachs & Co. for some losses on a $2.4 billion mortgage-backed securities portfolio can sue in federal court, denying Goldman's bid to send the case to arbitration.

U.S. District Judge Denise Cote said that the National Credit Union Administration Board, which is liquidating two credit unions that bought Goldman-backed mortgage-backed securities, can maintain a federal suit in which it alleges Goldman lied about the securities.

Goldman had asked the judge to...
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