Goldman Pushes 2nd Circ. To Ax $21M Bayou Award

Law360, New York (March 13, 2012, 7:18 PM EDT) -- A Goldman Sachs Group Inc. unit asked the Second Circuit on Monday to nix a $20.6 million arbitration penalty for clearing transfers into accounts tied to a Ponzi scheme, saying the ruling overstated the control brokerage firms wield over customer funds.

In a brief with the court, Goldman Sachs Execution & Clearing LP derided the June 2010 award by the Financial Industry Regulatory Authority to unsecured creditors of The Bayou Group LLC. Goldman served as the clearing broker for Bayou, a management company for a group...
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