Goldman Sachs Appeals Bayou Creditors’ $20.5 Million Award

[xchrom]

http://www.bloomberg.com/news/2011-10-14/goldman-sachs-asks-court-to-throw-out-20-5-million-bayou-creditors-award.html

Goldman Sachs Group Inc. (GS) filed an appeal seeking to dismiss a $20.5 million arbitration award to creditors of the failed hedge fund firm Bayou Group LLC.

Goldman Sachs asked the U.S. Court of Appeals in Manhattan to overrule a decision by the Financial Industry Regulatory Authority, the independent regulatory group for the securities industry. A federal district judge declined in November 2010 to reverse the Finra award.

The creditors sued Goldman Sachs Execution and Clearing LP in 2008 for its role as the prime broker and clearing broker for Bayou’s hedge funds. They said the Goldman Sachs unit aided a $400 million fraud at Stamford, Connecticut-based Bayou, which filed for bankruptcy in May 2006. Bayou co-founder Samuel Israel pleaded guilty to directing the scheme and is serving a 22-year prison term.

In the November ruling, U.S. District Judge Jed Rakoff in Manhattan said Goldman Sachs failed to show that the arbitration panel had “manifestly disregarded the law” in granting the award.

[midnight]

1. Does this mean they have to pay for doing something illegal?

[hobbit709]

2. Goldman Sachs thinks they are the corporate incarnation of Louis XIV.

And are above the law.

[formercia]

3. Nothing like Binding Arbitration.......

:rofl:

Laws are for little people and contracts are just meant for the other guy.