Goldman Sued For More Than $100 Million Over Securities It Allegedly Called "Lemons" And "Dogs"

lloyd Blankfein

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.

Click here to read 11 embarrassing Wall Street emails to remind you why you should never use email again >>

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.