Goldman Is Fighting a New Abacus Battle With an Angry Hedge Fund
- Battle over synthetic CDO’s ‘obscure’ provision heads to court
- Hedge fund says bank reaped $200 million from misconduct
Goldman Sachs Group Inc. headquarters stands in New York.
Photographer: Christopher Lee/BloombergThis article is for subscribers only.
Goldman Sachs might have a problem called Abacus. Again.
Financial types will recall that in the wake of the 2008 crisis, a synthetic CDO by the name of Abacus became a poster-child of irresponsible Wall Street behavior. Regulators ended up slapping Goldman Sachs with a then-unprecedented fine of $550 million.