Dutch Pension Fund Targets Goldman Over 'Toxic' RMBS

Law360, New York (January 27, 2012, 10:29 PM EST) -- The Netherlands' government employee pension fund on Friday sued Goldman Sachs Group Inc. alleging the bank misled investors into buying toxic residential mortgage-backed securities.

In a complaint filed in New York state court, Stichting Pensioenfonds ABP accused Goldman of failing to perform due diligence to make sure that shoddily underwritten mortgages were not included in the securities trusts they underwrote and sold.

And despite knowing that a large portion of the mortgages backing the securities were destined to fail, Goldman touted the trusts as safe investments...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.