It is time that Goldman is shamed into admitting to their frauds rather than passing off their corrupt behavior as mere "mistakes." Goldman Sachs, however, would rather not look too deeply into the standards they espouse.
An article in JD Journal describes how Goldman Sachs has lost an appeal against a $20.6 million award by creditors of Bayou Group and another piece in The Telegraph describes a suit for £250 million being brought against Goldman by a Dutch pension group. Each item gives us hope that some justice will finally be done.
Goldman Sachs Loses $20.6 Million Award Appeal
By JD Journal
On Tuesday, the Goldman Sachs group lost an appeal against a $20.6 million award won by creditors of Bayou Group, the now bankrupt hedge fund. Goldman’s argument was rejected by the 2nd U.S. Circuit Court of Appeals which found Goldman’s assertion without merit in claiming that the arbitrators making the award had disregarded the law. The three-judge panel appeals court observed, “The manifest disregard standard is, by design, exceedingly difficult to satisfy, and Goldman has not satisfied it in this case.”
Wall Street firms had been following the appeal with interest as it implied the imposition of higher legal standards on the acts of Wall Street brokers in general. The Securities Industry and Financial Markets Association had argued that a ruling in favor of the Bayou creditors could force brokers to “analyze the huge volume of trading they process along with daily transfers of funds to determine if customers are engaged in wrong-doing.”
Read the whole article here
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Goldman Sachs facing £250m in lawsuitDutch pension group Pensioenfonds Vervoer is preparing to sue Goldman Sachs Asset Management for up to £250m in a case that could throw more light on how the bank handled its customers' money in the run up to the crisis.
The writ could be filed at the High Court in London as early as today. It is expected to detail how the Goldman subsidiary invested the transport worker's pension funds in inappropriate assets, leading to substantial losses.
In 2008, the fund lost 14.1pc and, although the performance was not as bad as some rivals, it led to a review of Goldman's performance and the bank being replaced as Vervoer's main asset manager in 2010.Read the whole article here