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...
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.