Goldman Disputes $21M Bayou Arbitration Award In 2nd Circ.

Law360, New York (May 14, 2012, 7:19 PM EDT) -- A Goldman Sachs Group Inc. unit on Monday asked the Second Circuit to toss an arbitration award ordering it to return $20.5 million to a bankrupt group of hedge funds that allegedly ran a Ponzi scheme, saying the arbitrators’ decision ignored the law.

A lawyer for Goldman Sachs Execution & Clearing LP told a three-judge panel that Financial Industry Regulatory Authority arbitrators overstepped their bounds by expanding the law in a decision for creditors of the Bayou Group LLC, a group of hedge funds that went...
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