Thursday, 2 October 2014
Last updated 15 hours ago
Apr 29 2010 | 8:17pm ET
Goldman Sachs is in settlement talks with an Australian hedge fund that collapsed after losing millions on a collateralized debt obligation structured by the Wall Street giant.
Basis Capital Management, whose Yield Alpha Fund filed for bankruptcy three years ago, was burned by a CDO similar to the one at the center of the Securities and Exchange Commission’s fraud case against Goldman. Basis had invested US$100 million in the Timberwolf CDO, which a Goldman executive referred to as a “shitty deal” in documents released by a Senate committee in advance of a hearing about Goldman’s conduct this week.
Basis claims it lost US$56 million on its Timberwolf investment.
According to the Financial Times, the talks between the hedge fund and Goldman are preliminary and may not lead to a deal.
At Tuesday’s Senate hearing, Daniel Sparks, former head of Goldman’s mortgage division, said that Tom Montag, former head of its trading unit, was referring to Goldman’s own losses on Timberwolf, and not the quality of the CDO of itself, when he called it “one shitty deal.” Another top Goldman executive called Timberwolf a deal that “will live in infamy.”
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
High frequency trading is not evil, it is not a conspiracy and it really is not new; it is the natural evolution of the professional trading community making markets, providing liquidity and hopefully...