Reuters – Goldman Sachs Group Inc must defend fraud claims brought by a bond insurance company over its notorious Abacus mortgage product deal, a New York state judge ruled, but she decided that the investment bank did not unjustly enrich itself.
In a lawsuit last year, ACA Financial Guaranty Corp accused Wall Street’s most influential investment bank of financially inducing it to provide insurance for Abacus 2007-ACI – a synthetic collateralized debt obligation (CDO). Goldman settled with the top U.S. market regulator in 2010 over the same CDO transaction for $550 million without admitting wrongdoing.
