"Goldman Sachs Group Inc. (GS), the fifth- biggest U.S. bank by assets, was sued over its sale of mortgage- linked securities to now-failedcredit unions hours after it disclosed a list of other potential complaints.
The National Credit Union Administration filed a lawsuit in California today and said it’s seeking more than $491 million of damages from Goldman Sachs. American International Group Inc. (AIG), Fannie Mae and Freddie Mac are among firms that have also threatened to take legal action against the bank over mortgage- related securities, Goldman Sachs said in a regulatory filing.
The bank was already facing active mortgage-linked lawsuits from companies and investors that the firm estimated had experienced cumulative losses of $485 million as of June 30. The new potential claims aren’t included in that estimate or in the firm’s $2 billion estimate of “reasonably possible” losses from legal cases.
The list of entities, which also includes the Federal Housing Finance Agency and insurance companies Allstate Corp. (ALL) and John Hancock, “threatened to assert claims against the firm in connection with various mortgage-related offerings,” New York-based Goldman Sachs said in the quarterly filing. The company has reached agreements with some of the entities to toll the relevant statute of limitations"............READ MORE
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