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FINRA arbitration panel awards an institutional investor in collateralized debt obligations $80 million in compensatory damages, plus more than eight years of interest.

July 6, 2015
National Australia Bank v. Goldman Sachs, FINRA Case No. 12-04099

National Australia Bank invested $80 million in a Goldman collateralized-debt, which gave investors the opportunity to wager on the creditworthiness of a collection of mortgages. It was later discovered that, while Goldman was selling these securities to investors, it did not disclose that it was also betting against their value. National Australian Bank claimed that when the financial crisis occurred, Goldman profited from these securities while NAB lost its investments. Arbitrators ordered Goldman to pay $80 million, plus interest, to NAB for violating industry practices related to the sale of mortgage-linked securities before the financial crisis.

Case Law Alerts, 3rd Quarter, July 2015

Case Law Alerts is prepared by Marshall Dennehey Warner Coleman & Goggin to provide information on recent legal developments of interest to our readers. This publication is not intended to provide legal advice for a specific situation or to create an attorney-client relationship. Copyright © 2015 Marshall Dennehey Warner Coleman & Goggin, all rights reserved. This article may not be reprinted without the express written permission of our firm.

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