Goldman Units Must Pay Bayou Creditors $21M: FINRA

Law360, New York (June 25, 2010, 6:31 PM EDT) -- A Financial Industry Regulatory Authority arbitration panel has ordered two Goldman Sachs & Co. subsidiaries to fork over nearly $21 million to unsecured creditors of Bayou Group LLC, who had accused the units of aiding the defunct hedge fund's fraudulent schemes.

The FINRA panel rendered the $20.6 million award Thursday after finding Goldman Sachs Execution & Clearing LP and Spear Leads & Kellogg LP jointly and severally liable for damages suffered by the creditors.

The panel did not provide any reasoning for its decision, but the...
To view the full article, register now.