In a statement, Goldman said it believed the Basis case was "without merit" and emphasised it had lost "several hundred million" dollars on its holdings during the Timberwolf transactions. Timberwolf was cited in a scathing 2011 U.S. Senate panel report that faulted Goldman and other banks for pushing debt they expected to perform poorly. Levin was questioning Daniel Sparks on whether Goldman Sachs was pushing investments it knew were bad for clients. He referenced an e-mail sent to Sparks from his superior on a deal called Timberwolf. A representative from Goldman Sachs (GS, Fortune 500) declined comment on the reported government investigation, but issued a sharp rebuke to the Timberwolf suit, calling it … (The Timberwolf investment was named in the 2011 U.S. Senate report that found that Goldman misled clients about mortgage-backed securities.) Interestingly, Thomas Montag, the former Goldman Sachs' executive whose description of the Timberwolf product as "one shitty deal" became public thanks to a … On Wall Street, directives issued from above are called “axes,” and Goldman’s upper management spent a great deal of the spring of 2007 “axing” Timberwolf. The deal was called “Timberwolf,” but at Goldman Sachs, it got labeled with an obscenity – one Sen. Carl Levin invoked repeatedly during his nationally televised hearing. A. Goldman Sachs’ Conduct in Structuring the Four CDOs Did Not Render the Challenged General, Aspirational Statements False. Goldman aggressively sold Timberwolf I without explaining its pricing methodology. Senator Carl Levin blasted Goldman Sachs at Senate hearings over an internal email describing Timberwolf as 'one sh***y deal'. It is a witless, useless waste of time to babble on about going after Goldman Sachs in some criminal prosecution. Boise, Schiller & Flexner LLP for the defendants. (Harrer/Bloomberg) It is unclear how the information about Timberwolf figured into the SEC's investigation of Goldman's mortgage dealings. Shirley Werner Kornreich, J. The federal prosecutors investigating Goldman Sachs are focusing on Timberwolf, the infamous "shitty deal" repeatedly cited in a tense Senate hearing last month, according to people who have been contacted by the Manhattan U.S. Attorney's office. Read Next The Australian hedge fund, in its complaint, claimed that Goldman falsely claimed that the market for CDO investments had become stable even though it knew that was not the case. In the Timberwolf deal, Goldman kept an Australian hedge fund called Basis Capital in the dark about its counter bets. Goldman Sachs Disclosed Its Short Position to Investors in Hudson, Anderson and Timberwolf and Did Not Design These CDOs to Fail. Before moving to Goldman in 1998, Raazi was an ad salesman for "Rolling Stone" magazine and other Wenner Media publications, according to Reuters. Motion Sequence Numbers 001, 002, and 003 are consolidated for disposition. The US$1 billion Timberwolf CDO and the aggressive tactics Goldman employed to sell the deal were a focal point of an April hearing by the Senate Permanent Subcommittee on Investigations. ..... 10 2. The trader responsible for Timberwolf said that the day it was issued was “a day that will live in infamy”. It had been the holder of the Timberwolf collateralised debt obligations — the infamous “one shitty deal”, as Goldman Sachs insiders called them. It was collateralised debt obligation (CDO), often made of complicated structured mortgage deals, that was sold by Goldman Sachs… Before the Basis sales, on June 1, 2007, Goldman Sachs had sold $36 million in Timberwolf securities to a Korean life insurance company, … An Australian hedge fund is suing Goldman Sachs Group Inc over an investment in a subprime mortgage-linked security that hastened the fund's demise in 2007, a lawyer for the fund said. NEW YORK: Australian hedge fund manager Basis Capital has filed a lawsuit seeking more than $1 billion in damages from Goldman Sachs, accusing the firm of fraudulently selling it a "now notorious" financial instrument called Timberwolf, says a media report. The Timberwolf deal, infamously tagged a "shitty deal" during the Goldman Sachs Senate hearings, is now at the center of a criminal investigation around the firm, according to the Huffington Post. Wall Street and the Financial Crisis: Anatomy of a Financial Collapse is a report on the financial crisis of 2007–2008 issued on April 13, 2011 by the United States Senate Permanent Subcommittee on Investigations.The 639-page report was issued under the chairmanship of Senators Carl Levin and Tom Coburn, and is colloquially known as the Levin-Coburn Report. And GS knew it. (Id.¶¶ ... Goldman Sachs Group, Inc., --- F.Supp.2d ---- (2012) MARIAN WILKINSON: Goldman Sachs unleashed Timberwolf in early 2007 urging its global network to sell it quickly. If nothing else comes out of this, it should be a big fat signal to anyone considering doing business with GS — don’t. The Timberwolf CDO was a financial time bomb, not an investment product. I'll tell you why. Goldman has been tussling behind the scenes with lawyers from the firm, called the Basis Yield Alpha Fund, over a $100 million slice of the Goldman-sponsored Timberwolf CDO … A senior Goldman executive said, “Boy that timeberwof (sic) was one shitty (sic) deal,” referring to a $1 billion CDO Goldman Sachs sold named Timberwolf. Here's more evidence of his awesome-ness. ... Why a Criminal Case Against Goldman Sachs Matters and Why Charges Could Stick. Plaintiffs allege that Goldman knew it was selling poorly quality assets at inflated prices, and profited from its short position. What is Timberwolf and why the controversy? Goldman Sachs’ Conduct in ABACUS Did Not Reflect Intentional The SEC's complaint charges Goldman Sachs and Tourre with violations of Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange … Goldman Sachs Group, Inc., GOLDMAN SACHS & CO., GOLDMAN SACHS INTERNATIONAL, and GOLDMAN SACHS & PARTNERS AUSTRALIA PTY, LTD., Defendants. In Sydney, the local office of Goldman Sachs JBWere got the message. Posts Tagged ‘Matthew Bieber Goldman CDO trader on Timberwolf transaction’ Questions from Sense on Cents for Goldman Sachs. The Timberwolf CDO was issued in March 2007, following a Goldman Sachs quarter that ended February 2007 in which one department of the bank shifted from $6 billion of bets that mortgage bonds would perform to $10 billion they would default, according to … (Id.¶ 255.) 652996/2011 Lewis Baach PLLC for the plaintiff. 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