May 12, 2015 / 12:17 AM / 2 years ago

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

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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.Lucas Jackson

(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

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