Goldman Wants Second Extension In Paulson CDO Case

Jul 13 2010 | 12:11pm ET

Goldman Sachs is expected to seek another extension in filing its reply to the Securities and Exchange Commission’s fraud lawsuit against it.

The New York-based firm, which is accused of misleading investors in a collateralized debt obligation it allegedly structured and marketed on behalf of hedge fund Paulson & Co., has already received on 30-day extension, and will likely seek a second, the New York Post reports. According to the SEC, Goldman did not tell the other investors in the CDO about Paulson’s involvement, nor that the hedge fund would be shorting the CDO through credit default swaps it bought from Goldman.

Paulson has not been accused of any wrongdoing. Goldman has denied the charges.

Currently, Goldman’s response is due on June 19. It is not clear why the firm plans to seek a second extension, although Goldman is reportedly eager to settle the case. Still, a top Goldman executive said last month that a deal with the SEC was not on the horizon.


In Depth

Debunking Conventional Investment Wisdom

Feb 8 2017 | 3:22pm ET

Due diligence in the hedge fund world has long involved some combination of the...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

The Future of Private Equity: New Opportunities, New Challenges

Feb 3 2017 | 6:41pm ET

The private equity industry’s astonishing rebound since the financial crisis has...

 

From the current issue of