Thus the Rule by the Banks continues apace.
Goldman Sachs Wins Dismissal of Abacus CDO Suit on Appeal
By David McLaughlin & Chris Dolmetsch - Bloomberg
Goldman Sachs Group Inc. (GS) won dismissal of bond insurer ACA Financial Guaranty Corp.’s fraud lawsuit over a collateralized debt obligation known as Abacus.
A New York state appeals court in Manhattan today ordered the complaint against Goldman Sachs dismissed, overturning a lower-court ruling that had allowed the case to proceed.
ACA claimed that New York-based Goldman Sachs and hedge-fund firm Paulson & Co. conspired to induce ACA to provide financial guaranty insurance for the Abacus transaction and deceived the insurer into believing Paulson was a long investor when in fact it was taking a short position.
The appeals court said ACA could have uncovered Paulson’s actual position, “but apparently chose not to.”
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