Goldman Whistleblower Calls For Down Under Probe

May 20 2010 | 2:11pm ET

A former independent director of an Australian hedge fund that collapsed in the wake of its investment in a Goldman Sachs collateralized debt obligation has called on authorities in that country to launch an investigation into the investment bank.

David Mapley, a former director of Basis Capital Management’s Yield Alpha Fund, approached the U.S. Securities and Exchange Commission about the Timberwolf CDO, which cost Basis US$56 million, in 2008, two years before the regulator brought its fraud lawsuit against Goldman over a different CDO. Now, he’s calling on the Australian Securities & Investments Commission to launch a probe of its own.

“I don’t know if the regulator in Australia is looking at this trade but they certainly should,” Mapley told The Australian. “Goldman Sachs JBWere were a part of the selling process and there were a lot of Australian investors who were caught.”

Goldman is reportedly in settlement talks with Basis. A Goldman executive had referred to the Timberwolf CDO, which Basis invested US$100 million, as “one shitty deal.” Another called it a deal that “will live in infamy.”


In Depth

Israeli Hedge Fund Harnesses Big Data

Jul 28 2014 | 8:10am ET

Apica Green is a multi-million dollar Israeli hedge fund that is based in Tel Aviv...

Lifestyle

David Yarrow On Growing His Hedge Fund And Shooting The Animals And People Of Africa - As A Photographer

Jul 23 2014 | 6:44am ET

While he’s always been a photographer, recent expeditions to Iceland, Ethiopia...

Guest Contributor

Why Is The Shipping Industry Underwater?

Jul 31 2014 | 7:31am ET

Anyone who’s taken a look at the global shipping industry recently probably knows...

 

Publisher's Note