Goldman Sachs is being sued for more than $100 million worth in residential mortgage-backed securities that the bank itself allegedly called “lemons” and “dogs,” Bloomberg reported.
The suit filed by the Allstate Insurance claims Goldman knew $123 million in securities it sold the insurer were junk.
What’s more is Goldman allegedly described these securities itself as “lemons,” “crap,” “junk” and “dogs,” Allstate said in its complaint.
Really, “lemons” and “dogs”? Can’t we think of more creative adjectives? At least it’s better than “goat poo.”
Goldman isn’t the only bank the home and auto insurer is going after.
According to the Bloomberg, Allstate has filed similar suits against JPMorgan, Credit Suisse, Bank of America’s Merrill Lynch, Citigroup and Deutsche Bank to recover more than $2 billion in losses. The insurer alleges the banks misrepresented underwriting standards, owner occupancy data and loan-to-value ratios, Bloomberg reported.