Sunday, 24 May 2015
Last updated 1 day ago
Mar 21 2012 | 12:56pm ET
Goldman Sachs will have to defend yet another collateralized debt obligation lawsuit, a federal judge has ruled.
The bank had sought the dismissal of a would-be class action filed in 2010 by hedge fund Dodona I. But U.S. District Judge Victor Marrero decided that the hedge fund "has alleged facts supporting an inference of recklessness which is at least as compelling—if not more so—as any opposing inference."
Dodona alleges that Goldman misled investors in a pair of CDOs, called Hudson Mezzanine, valued at $2 billion. According to Dodona, the huge drop in the Hudson CDOs' value—the hedge fund paid between 95 cents and 100 cents on the dollar in early 2007, and sold them in October for just 2.5 cents on the dollar—was entirely the result of Goldman's misconduct. The lawsuit followed Goldman's settlement of a Securities and Exchange Commission claim over another CDO, and an Australian hedge fund's lawsuit over yet another.
"Goldman's sudden—and prescient—shift to reducing subprime risk supports the inference that it possessed some unique insight," Marrero ruled.
Mar 20 2015 | 12:45pm ET
StreetWise Partners, a non-profit organization that works with low-income individuals to help them overcome employment barriers, raised over $275,000 at the 2015 Raising the Ante Charity Poker Tournament and Casino Event last Wednesday evening at Capitale. Here are some photos from the event. Read more…