Goldman Sach faces lawsuit for selling mortgage-linked securities

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http://au.ibtimes.com/articles/27773/20100610/goldman-sach-faces-lawsuit-for-selling-mortgage-linked-securities.htm

An Australian hedge fund manager will file a multi-million dollar lawsuit against Goldman Sachs for losing money in mortgage-linked securities sold by the investment bank.

Basis Capital, who owned the collapsed Yield Alpha Fund despite the mortgage crisis, has accused Goldman for selling $US78 million of its investment product called Timberlwolf.

A lawyer representing Basis said that Goldman pitched the Timberwolf CDO products in June 2007 despite the fact that it was known to be a failure.

(snip)
Emails from Goldman executives describing the investment product as “totally dead” and “one shitty deal” were uncovered and obtained during the government's investigations.