Skip to content
Subscriber Only

Goldman Sachs Sued Over German Bank’s $37 Million Loss on CDO

Goldman Sachs Group Inc., which served as the placement agent for a collateralized debt obligation named Davis Square Funding VI, was sued by Landesbank Baden-Wuerttemberg over its $37 million loss on the investment.

The CDO held 95 percent residential mortgage-backed securities, of which 33 percent were subprime and 46 percent were “midprime,” the German bank said in a complaint filed yesterday in federal court in Manhattan. TCW Group Inc., the investment adviser on the CDO, was also sued by the bank.