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