WaMu Trust Alleges Naked Shorting By Goldman, Seeks Probe

Law360, New York (December 4, 2012, 5:34 PM EST) -- Washington Mutual Inc.'s liquidation trust asked a Delaware bankruptcy judge Friday to let it investigate Goldman Sachs & Co. for potential breach of contract claims, saying new evidence shows Goldman betrayed its client by driving its stock price down through a naked short-selling scheme.

The WMI Liquidating Trust asked U.S. Bankruptcy Judge Mary F. Walrath for authorization to conduct a limited examination of Goldman and its affiliates, arguing that evidence recently developed by its litigation subcommittee suggests that breach of contract and other claims could be...
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