Goldman Rips ACA's Diligence In $120M Abacus Suit

Law360, New York (January 2, 2013, 6:49 PM EST) -- A Goldman Sachs Group Inc. attorney urged a New York state appeals court Wednesday to shut down ACA Financial Guaranty Corp.'s $120 million suit over the so-called Abacus mortgage-backed transaction, arguing that ACA should've done its homework before insuring the deal.

Richard H. Klapper of Sullivan & Cromwell LLP, who represents Goldman Sachs, said during a hearing that ACA didn't try to verify whether deal sponsor hedge fund Paulson & Co. had taken a long or short position on the deal even though ACA was an...
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