Chinese Firm Refuses To Pay Goldman $80 Million For Bad Derivatives Bets

China McDonalds

Goldman is in a pay scuffle with a Chinese power company.

According to Reuters, a Goldman subsidiary, J. Aron and Company, says that Shenzhen Nanshan Power owes them $80 million.

But Shenzhen Power is refusing to pay. They say that J. Aron is trying to collect $80 million in terminated oil option contract fees and losses, but the contracts were signed without company approval.

This is not the first time this year that the enforcement of derivatives contracts has become an issue in China, and from the sound of it it will probably grow as local officials are forced to adjudicate between homegrown companies and the international croupiers looking to do business there.

Read the full article on Reuters.

NOW WATCH: Money & Markets videos

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.