IKB Considers Suing Goldman Sachs for fraud!! German lender IKB said Wednesday it is considering suing US giant Goldman Sachs after losing 150 million in a fund that is subject of fraud charges in the United States. Germany's state development bank of KfW , which bailed out IKB with billions of euros when it became the first majority casualty of the global financial crisis, was also looking into legal action, a KfW spokesman said. The SEC accused Goldman Sachs of "defrauding investors by misstracting and omitting key factors" about a product based on sub-prime, or higher-risk mortgage-backed securities. The company was vigorously denied any wrongdoing and sought to defend its reputation as Wall Street's most stable finance house.
Meanwhile, Germany's financial regulator Bafin has requested further information from the SEC on its investigation. Britian's Financial Services Authority(FSA) watchdog on Tuesday launched a probe into the US investment bank after Prime Minister Gordon Brown accused it of "moral bankruptcy"
According to business daily Handelsblatt, some members of Chancellor Angela Merkel's ruling coalition are considering a freeze on Germany's financial ties with Goldman Sachs.
this is a good blog. They will problably win the sue if they can prove the fraud. Hopefully the best result will come out. Germany's economy is very strong and very good economy. Good job.
ReplyDeleteIf they decide to go ahead with a lawsuit, they will just be one in a long line of complaints against Goldman Sachs. I would be very surprised to see anything fruitful come out of a lawsuit.
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