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2008 Meltdown: NY Appeals Court Hits Elitist Goldman Sachs Bank with Renewed Multiple Fraud Claims

May 7th, 2013

Posted by: Barry Secrest
Published on May 7th, 2013 @ 06:59:58 pm , using 439 words
Posted in Events and Issues: Credible Resources

By Joseph Ax, Reuters

NEW YORK (Reuters) - Goldman Sachs Group Inc must face fraud claims brought by CIFG Assurance North America over insurance it provided for $275 million in mortgage-backed securities, a New York state appeals court ruled on Tuesday.

CIFG claimed in a 2011 lawsuit that the investment bank fraudulently induced it to provide insurance for a portfolio of more than 6,000 subprime residential mortgages by concealing the shoddy quality of the loans.

A trial judge in Manhattan threw out that claim last year, ruling that CIFG would have uncovered the alleged misrepresentations had it performed proper due diligence.

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