Goldman Sachs ordered to pay $80 million plus interest in 2006 case

Mon May 11, 2015 8:15pm EDT
 
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(Reuters) - Goldman Sachs Inc has been ordered to pay $80 million, plus interest, to the National Australia Bank for breaches associated with the sale of mortgage-linked securities, according to a court filing.

The May 7 decision, that came from an arbitration panel under the Financial Industry Regulatory Authority, granted NAB's request for compensation and also awarded interest at a 3 percent annual rate since December 2006.

The marketing materials on which the NAB relied for creating a collateralized debt obligation called Hudson Mezzanine Funding 2006-1, masked Goldman Sachs’s "significant conflict of interest with its clients", the panel found.

The NAB had argued for $230 million in total damages including $80 million in compensatory damages and interest of $60 million.

The case number is 12-04099.

(Reporting by Amrutha Penumudi in Bengaluru; Editing by Diane Craft)

 
A Goldman Sachs sign is seen above the floor of the New York Stock Exchange shortly after the opening bell in the Manhattan borough of New York January 24, 2014.  REUTERS/Lucas Jackson