2008 Meltdown: NY Appeals Court Hits Elitist Goldman Sachs Bank with Renewed Multiple Fraud ClaimsSubmitted by Bob-45 on Tue, 05/07/2013 - 20:53
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.