So let us move on to the latest thing we know that Goldman has going against it--another lawsuit.
The suit involves $1.07 billion against Goldman's Timberwolf securities filed by Basis Capital, a hedge fund:
Goldman loses bid to end lawsuit by hedge fund over CDO
By Karen Freifeld - Reuters
. . . .
We're very pleased the court agrees with us that Goldman needs to answer for its conduct," said Washington, D.C., attorney Bruce Grace, a partner in Lewis Baach, who represents the fund.
Goldman's CDO practices have drawn regulatory scrutiny. In April 2010, Goldman agreed to pay $550 million to settle U.S. Securities and Exchange Commission charges that it sold the risky Abacus 2007-AC1 CDO while letting hedge fund billionaire John Paulson bet against it. The bank did not admit wrongdoing.
Basis Yield Alpha Fund is seeking to recoup $67 million of losses plus $1 billion of punitive damages from transactions known as Timberlake [sic] and Point Pleasant. Basis Yield was managed by Sydney-based Basis Capital Funds Management Ltd.
Read the entire article here