Goldman Dodges Insurer's $120M CDO Claims On Appeal

Law360, New York (May 14, 2013, 3:26 PM EDT) -- A New York state appeals court on Tuesday tossed ACA Financial Guaranty Corp.'s $120 million action targeting Goldman Sachs over a mortgage-backed securities transaction gone sour, finding Goldman never guaranteed that an outside hedge fund was taking an equity position favorable to ACA.

In overruling a lower court’s order, a divided panel of judges dismissed bond insurer ACA’s amended complaint alleging that Goldman tricked it into believing that hedge fund Paulson & Co. would take a long position in the first-loss tranche of the Abacus 2007-AC1...
To view the full article, register now.

UK Financial Services

UK Financial Services

Read Our Latest UK Financial Services Coverage

Financial Services Law360 UK provides breaking news and analysis on the financial sector. Coverage includes UK and European Union policy, enforcement, and litigation involving banks, asset management firms, and other financial services organizations.