Goldman might settle with a hedge fund that lost money on Timberwolf, the “shitty deal” Sen. Levin couldn’t get enough of at Goldman’s Senate hearing on Tuesday.
Hedge fund Basis Yield Alpha Capital claims that it went out of business after a $100 million investment in Timberwolf, according to the Financial TImes.
Of course Timberwolf, the CDO former-Goldman exec Tom Montag called, “one shitty deal,” fell drastically in value in 2007. Basis Yield invested in the CDO and apparently, it is trying to pin its $56 million losses on Goldman.
It’s surprising news that Goldman might settle with Basis Yield, especially because there’s no word on why the fund could blame Goldman for its losses other than the “shitty deal” email and another that said the Timberwolf deal “will live in infamy.”
However, Goldman may apparently settle with the SEC soon, so maybe the firm just want to put this all behind it.
Business Insider Emails & Alerts
Site highlights each day to your inbox.