Goldman CDO suit throws focus on collateral manager conflicts
Goldman Sachs fraud allegations show portfolio managers credit selection interests are often not aligned with benefiting CDO note-holders, say lawyers.
A recent high-profile legal action launched by the US Securities and Exchange Commission against Goldman Sachs has thrown fresh scrutiny on apparent conflicts of interest between synthetic collateralised debt obligation (CDO) collateral managers and note-holders on whose behalf the portfolios are supposedly being managed.
A civil lawsuit filed by the US SEC at the US District Court for the Southern District of New York on April 16 alleges Goldman Sachs violated securities law by failing to
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