Australians Sue Goldman Over ‘Shitty Deal’

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Two months after Senator Carl Levin turned Goldman Sachs executive Thomas Montag's characterization of the company's Timberwolf collaterized-debt obligation as a "shitty deal" into an Internet meme, the folks on the wrong side of it — Australian hedge fund Basis Yield Alpha Fund — have filed suit against the company "for making materially misleading statements...that forced BYAFM into insolvency." (It's funner if you read the complaint in an Australian accent.) They're asking for the $1 billion they lost on the transaction, plus $56 million in damages. Goldman, for its part, is unapologetic. Spokesman Michael DuVally told Reuters the suit was "a misguided attempt by Basis ... to shift its investment losses to Goldman Sachs." To be fair, he kind of has a point. What were a bunch of dudes from 10,000 miles away doing purchasing $1 billion worth of American mortgages in the first place?

Goldman sued by hedge fund over notorious CDO deal [Reuters]
Related: 'Shitty Deal' Rundown