Goldman Sachs Group has signaled it will fight a US lawsuit over subprime mortgage instruments the same way Bank of America's Merrill Lynch unit and UBS have challenged similar claims -- by invoking the concept of caveat emptor: Latin for buyer beware.
The strategy may work. By insisting that purchasers of collateralized debt obligations knew what they were getting into, Goldman Sachs is following a well-traveled path. Both Merrill and UBS won dismissal of similar claims that they misrepresented the risks of such assets by saying the buyers were sophisticated enough to know better.
bloomberg.com
No comments yet