Skip to Content

High-Dollar Claim Adds to Goldman Legal Woes

July 2, 2013 In The News

A $230 million arbitration claim by National Australia Bank Ltd. NAB.AU +2.05% alleges that Goldman Sachs Group Inc. GS +0.04% violated industry sales practices related to mortgage-linked securities that later soured, adding to the list of legal skirmishes the Wall Street firm has faced in the wake of the financial crisis.

NAB’s claim, filed in December, hasn’t previously been reported. Goldman disclosed the claim in regulatory filings with the Securities and Exchange Commission and the Financial Industry Regulatory Authority. The firm summarized the dispute in the Finra records of at least four men who held key roles in Goldman’s mortgage business in the months leading up to the crisis: Daniel Sparks , Michael Swenson , Peter Ostrem and Darryl Herrick.

Click here to view the full article.